I was a bit confused by your second sentence. 

That question is relative, and can't be quantified in a sentence.

It later talks about if an owner has more than 3 rentals, they can only sell to owner occupied buyers unless they own 3 or less rentals.the first sentence where it says “the maximum number of tenant properties allowed at any one time will be limited to 3”.

Your last sentence said it all. 

the last part of that sentence is where the issue lies. you have to get into a habit and routine of putting in the hours for yourself. you have to find the motivation either internally or externally via somebody else keeping you accountable at the end of the day the question you have to ask is "How bad do you want it"? 

I should've separated my first 3 sentences from my 2nd three sentences.

I started this thread assuming we would have to sell our house to use the equity, but given the generous advice on this thread, it's pretty clear that HELOC / HEL might be the way to go, which in turn means we don't need to sell our current home to use the equity, and thus opens us wide to using that equity to fund our investments anywhere, not just bay area (sorry for the long run on sentence).

The fines and jail sentences are getting larger as they get more tired of the backlash of dealing with unlicensed work.4) You act like you can just waltz in and walk out with a GC license....?

Thanks @Andrew Pope and @Theresa Harris Can you please provide me with a couple of sentences that I can go back to him with?

Not necessarily because in exchange for that minimal cash flow you are absorbing a lot of risk.Instead of being on the hook for large loans, what if you were signing up for a prison sentence?