There are also financing fees to pay for due diligence, loan applications, legal, etc., which are around 1.75% of the purchase price.If you charge an acquisition fee, you will need to raise that too.The 10% liquidity doesn't need to be raised.

Even removing the belongings of an abandoned unit may have legal requisites.

If your grandfathered in he city has no right to determine what homes you bring in...this isn’t legal advice.

and is there a benefit to the buyer tax-wise if it is legal?

It is technically physically and legally possible but it is not the norm.

They did everything they could to discourage rentals short of banning them which would have cost too much to file the legal documents.

Look at Legal Notices under the classified section.

This is legal under Costa Hawkins and I'm comfortable taking on the lease individually, but am not sure how to explain the situation to new housemates.

That being said the obligatory caveat of me not being a legal professional and this not being sound legal advice from a reliable source needs to be typed.

Fannie Mae does not acknowledge the legal fiction that someone owning an LLC that owns a house does not own the house.