I am not looking for additional employment...just investment opportunities... but would prefer to not have to get formal permission

Granted it's not formally approved yet, but the code has provisions for the change of use given the age of the structure (over 50-years old) - it's grandfathered in.  

Where we are nowAfter sorting it all out over the last 6 months, Bob's kids agreed to start paying again and to formalize the partnership.

Purchase price: $81,500 Cash invested: $25,000 3 Bedroom, 2 bathroom, 2 living room, formal dining room, with washer and dryer hook-up home.

In California, the landlord needs to return your deposit minus expenses within 21 days.I would recommend any future relationships you have with a landlord be formal and any communication regarding repair requests, lease terms/agreements,  etc be in writing.

@Joshua Hively Yes, my friend is selling their home that I'm currently renting from, so I only received about a 2 weeks notice to vacate essentially - which is fine since there was no formal agreement.

If they have a formal appraisal, I doubt they'd be that flexible.

I’ve found some people, but my hope is to expand my circle and put together something more formal and structured.

I think formally, you could use your personal account, explain all the deposits, and be fine.....but it will be a lot of paperwork to do it. 

Eventually as you work with someone over a long period of time, you'll learn what to expect from each other and can relax on the formalities.