Yes, I am using an agent and working on networking with other investors in the area to learn more about the specific market and their successes and setbacks. 

Long Beach is very restrictive in building--I believe the minimum SFR size is 1000 or 1200 sq. ft. with typical SFR setbacks.

Now, forgive my ignorance, but I was reading on the assessors website about setbacks.

I ask myself if it (a setback or something bad) wiill matter 5 years from now or not.   

Don't get fooled by the PR angle of "public safety", requirements are minimal other than providing established business with regulatory capture.Given the real incentive you see why cities will play ball with AirBnB but not Uber.

Increasing market volatility and asset class specialization is driven by three things: 1) Consumer demand, and 2)Banker options, 3) Regulatory climate.  

Lots near a main station have gone from R1 or one house on roughly a 50 x 150 lot up to unlimited density if you follow guidelines on setbacks, parking, landscaping and stay below 60 feet total heights.  

The only time I see "selling to buy" as a viable strategy is if there is some degree of certainty that my sell property is going to suffer some type of economic set back, and my buy properties are going to return at least as much cash flow to me (including the recovery of sale costs and loss of cash flow from that asset) , appreciate at the same rate or above as the asset I sold and the by assets are NOT going to be exposed to the same degree of potential economic set back as the sell property. 

Jumping through all the regulatory hoops is what costs so much money and to compensate the contractors for the amount of risk and compliance paperwork involved.

The sad thing is that some of these properties cannot be replaced on the small lots because of the modern codes and set backs and they can't e assembled with adjoining properties.