You may need to seek legal counsel on this.2) Get all the info about your rental property as possible: leases, rent ledgers, tenant contact info, etc.3) Start looking for a new PMC4) Execute your termination notice5) Once transfer is complete, circle back to decide if worth suing them.

Then there is city approval and whether they want a 2 to be a 4 (seems like the nearby properties might support it).

Then in 6 months refinance into a conventional loan and you can exit the property legally. 

There is some room for creativity here, but it takes careful planning and execution, and there is only so much you can push it before crossing the line from aggressive but legal to reckless and punishable.GROUP 2: Tax strategies that do not belong on the EOY to-do listForm an S-corporation.

I ended up spending some extra time making the finished basement legal (add insulation and egress).   

Some lenders charge 5% released upon C/O, others release once that particular line item is approved by local inspection agency.

Have two years of W2 income, RE goals, and start talking to lenders about getting pre-approved.

but working with someone who is local to your market, who can show you their legal documents that they have used, introduce you to a proper title/attorney office for drafting documents...I mean, nothing is foolproof...but that route will have a significantly higher success rate. 

Do not rely on it for legal advice.

Myself I think if one wants to get into real estate in CA you get into the bizz you get licensed so you can legally collect fee's you put in the hard work like most wholesalers have to now..