Great, rent to one of the other 190 that do as you request without fighting you on it... self selection bias is a thing of beauty, you're narrowing your pool to people that you're more likely to want as tenants anyways. 

Basically until a neighbor complains to the city, if you have an unruly AirBnB guest.At that point, I think you'd have a problem with the city because you'll have essentially turned it into a mixed use property, part residential (2 units) and part commercial (the studio short-term accommodation).I think you would ultimately lose that fight, and possibly have to pay fines, but you might be able to get away with it for years, if you are so inclined.As I said though, I certainly wouldn't recommend basing your purchase price on that, because I think it's ultimately an illegal use of the property.

Best case, pre-virus, it's at least a 4 month process on top of building permits but can take much, much longer to get a variance and there are no guarantees, it depends on if the neighborhood approves it or fights it and it is neighborhood by neighborhood.

Now I am fighting with the 1/2 owners lawyer who is also his real estate agent to give me any information on the buildings.

Not to mention we are fighting rent control.

I am in the process of disputing it with the property manager and being as we are in CA and I know the tenant laws here favor us a lot I am willing to fight this.

The pros for this bucket is that you may be able to generate far greater returns, and will get hands on experience with a more active role, fighting fires on a daily basis.

It's because some people fight it instead of ignoring it like youre doing it.  

I would take the payment they are now making, apply it to your January rent, and let the old landlord fight it out with his old tenants. 

I wouldn't rely on her expertise to advise on a property's investment potential, but when it comes to closing the deal she really fights for her clients.