and something I should get permission by LA Housing department first?  

They basically kept sending me to different departments and no one could help me. 

There are still backlog delays with the Cape Coral Building Department in issuing CO's for new construction homes in the city.

The banks underwriting department with use what you reported minus deductions from your tax returns from the last 2-3 years etc.

From the rough numbers listed, and counting 75% of the rental income on your departing residence, you look great from a lending perspective. 

Government-backed loan programs from the Department of Veterans Affairs or the Federal Housing Administration may offer financing options, but the property will need to meet standards for approval.

You would however, need to be able to qualify for both mortgage payments unless you get a lease agreement for the departing residence; you could use 75% of rents to offset the mortgage.

A few years ago, the City found an error in the way the City calculated pension to some, now retired, police department employees and overpaid.

The city is involved because I contacted the zoning and planning departments to find out what the deal is with the property.

I am calling the water department now to continue discussing.