Hence you needing to retain an Architect and have them do due diligence into the feasibility at which part of their services would be checking what is able to be built in compliance with the applicable jurisdictions. 

@Kristjan MeitzFor out-of-state properties, a property management company is recommended for tenant relations, repairs, rent collection, and compliance with local landlord laws.

So I shorten my reply, remove some triggering words and my reply goes through. 

However, this exemption often depends on specific criteria being met like building permits, zoning compliance, and certificate of occupancy for the newly created units and you would get this from the LADBS.

It seems the most likely issue is simply having your personal names as the deed holder listed in a complaint although again, based on what you shared about your sound operations your insurance should cover any claims that would arise since you wouldn’t be triggering any coverage exclusions.

have you thought about changing and are waiting to pull the trigger? 

I got a letter from my mortgage company that said I can move the title into an LLC if I like without triggering the due at sale clause. 

This is because loss of rents/income is almost always triggered by a "covered" peril (aka covered cause of loss). 

Depending on which brokerage you use, you could possibly borrower against your securities holdings with a line of credit (similar to a margin loan) if it's not a retirement account. 30-35% of the balance would likely be within reach, but make sure you FULLY understand margin calls and when they would trigger.

By "positioned" I mean - ready to pull the trigger when the right deal comes along.