As far as I know there is no set convention on whether the first out is depreciation recapture or profit. 

@Mike Hartzog  correct... in our world 2nds simply did not happen all first trust deed or mortgage lending and all collateral assignments of said.now my facility at Umpqua 4 million.. they would not actually record the assignment they just held it and we gave them an alonge'  they would only record if they were going after the asset.Riverview and Columiba community were I had the same facilities only larger they recorded everything so the transaction was a little more cumbersomeand of course we had to close the loan with our own cash then back fill.. much like a conventional lender who does table fundings then sells in the secondary market.. but once the machine was up and running it went well but it took staff to run.. that's for sure.

The price point you want to buy in there is little inventory.

But I needed this so badly for my business and am unable to obtain conventional financing that I rode it all the way out - like a complete idiot!  

I haven't any deals in OC yet, the inventory is pretty scarce but there are deals to be found.

There's also a bus tour and convention including break out sessions from local experts this weekend put on by Thrive Realty. 

Is it possible to cover the three units in a single conventional loan if I am not purchasing the entire quadplex?

seller or private money or even better Cash is the best.Once the property is appraised ready you can get conventional loan , 30 years fixed with 25% down.

That said, if you are investing in a market with little to no multifamily inventory, then I think condos are not a bad idea at all. 

One consideration is if it's up to 4 units, I could refinance later on with a conventional loan to get a lower interest rate, so all things being equal I'll hunt for that.