They are quoting deed restrictions as reference now.

Any restrictions on cars per household or allowed to be parked on street overnight? 

Ya, him extending the restriction on evictions is nuts.

. - Covid has restricted rent growth here since March of 2020 and removed the ability to charge late fees. - It has been on the market for over 300 days. 

You might be able to move to an another 2-unit if there were legitimate reasons (e.g. closer to work, better schools, your family has grown and you need more space, etc.).There are no restrictions to you buying the multi-unit as an investment purchase and the needed down payment.

Municipalities can limit the number of unrelated people who live in a single property, and there could be other restrictions that will affect your rentals. 

I would love to do this at my home in California and our counties, under enormous pressure to accommodate low cost housing, have eased zoning restrictions in recent years to make ADU construction feasible. 

I understand this may be due to COVID restricting the supply of houses and driving asking prices up.

You might also want to check if it is a historic building as there could be restrictions on exterior renos.

Hard money lenders don’t lend to owner occupants due to mortgage restrictions (plus that would be expensive for a down payment).