They can make just about any rule they desire (some dictate the type of flooring you can place in your unit). 

The 10% cap on increased values is for homesteads; on investment property they can take you up as much as is dictated by the market. 

Depending on the level of the improvements, building codes may dictate the use of higher cost items in a multi-family property (copper supply plumbing, cast iron exit plumbing, hard wired smoke detectors, arc-fault breakers, maybe even sprinklers or fire escape).

Different asset classes and types of investment can be dictated by deal size to a degree. 

I wasn't aware that the sheriffs go around to the neighbors to let them know that an eviction is to take place (not sure if there's a difference there in terms of what your state law dictates but was unaware that they do this; nice to know!).

If you figure out your price range is and what size mf property you're after, itll help dictate what areas you can look at. 

Hey,Ultimately this is going to be dictated by your market and the logistics of the conversion.

Perhaps being in California there are regulations that dictate what you must do that may be different than other states.

With your $18,000 to purchase it pretty much dictates a personal home purchase is your avenue available if going it alone.A couple of other options  come to mind.  

Don’t let them dictate the terms of your business.