Indeed, the FAIR ordinance is anything but fair to non-corporate landlords, seemingly punished for investing in rental houses to generate income as an alternative to stocks and bonds.A handful of opportunists likely could learn to exploit these new rules, preying on otherwise law-abiding landlords to obtain legalized shake-down payments.

Quote from @Michael Baum: Hey @Dina Schmid, so legally a bedroom requires a closet and an egress window.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

You may consider terminating the lease depending on how much time remains, your skills, the legal system, and other factors.Based on what you've said, I am concerned there's someone else occupying the home or something else is going on.

As an investor, I’ve had multiple sellers try to get out of an agreement after we had a legally executed mutually agreed upon sales/purchase agreement.

I am exploring "office hacking" but i don't know if there are any legal or zoning issues with something like that. 

Do not rely on it for legal advice.

After looking into it more, I'm concerned about potential tax implications and legal issues, such as piercing the corporate veil.

Are you aware of city of San Diego rules regarding converting existing legal space to ADUs?  

@Rud SevHere is a start:https://www.biggerpockets.com/forums/51/topics/839015-are-sy...https://www.biggerpockets.com/forums/51-tax-legal-issues-con...