Competition remains strong but it doesn't mean your goal is impossible to reach.

Is the basement legally considered living space?

It is impossible for us to tell whether contractors are making mountains out of molehills but what you are describing is the norm on older homes

Financing a Multifamily (5+ units) project for a 0 experience borrower will be just about impossible to find. 

As you know its near impossible to find a good cash flowing deal in CA due to sale price, taxes and lack of inventory.Last one I closed on was over off of Germantown Road it was a great 2 unit that needed a little TLC for $160K but passed an inspection and was livable.

Much better than a legal filing or media attention. 

Investment properties prove to be more challenging, but not impossible when titled in your own name.  

“Broker” is a legal term that often requires standardized coursework and a state license. 

In my experience, finding cash-flowing deals on-market can be challenging here (1% rule can be hard to find) but not impossible.

There are other ways to legally raise capital, however, they have some inherent disadvantages making them considerably less desirable for what you’re trying to do.