Right after we purchased our triplex, they passed the first round of regulation requiring permits and a set of rules to follow (January 2019). 

@Da Shiek WoodardI would suggest that you purchase a multi-family property (as your primary residence) that you would be comfortable living in for one to three years (depending on your mortgage companies rules and regulations).

Is it federal or regulated by state?

@Dave Foster I was planning on doing a 1031 but I do need to familiarize myself with these more, I'm not sure of all of the specifics and regulations.

I thought part of their charter/purpose was to ensure local jurisdictions abide by the ADU regulations. 

. - Managed internal and external client communication adhering to deadlines and compliance regulations.

The act doesn't mention compensation, just that property management is a regulated activity.

@William StrafaceHML are not regulated the same way big banks are.

I know that they have a ton of upside, however I am unsure of the rules/regulations surrounding them and possible limitations surrounding how many one can take out.

In Montclair, they will not close open permits at all, but for CO they have you sign an affidavit that the house and/or space complies with all regulations.