Besides this option, are you also open for a house hack (finish of a basement, Accessory dwell unit, mother-in-law, .....)If you are open for the two options, you will have more houses to choose from.Always open to more conversation over phone or coffee if that's helpful!

One of them is a multi family dwelling where by I have 5 tenants on one property.

It is a legitimate dwelling as its metered separately and has its own address.

A dwelling in which somebody else will live.

I explain that on my condo, house and accessory dwelling unit alone here in Los Angeles will net approximately $100,000/year with 3% appreciation in 30 years.   

The single dwelling house is KING and will be for several months. 

A guesthouse shall not: +5(1) Provide more parking than the one required space; +5(2) Be advertised for occupancy through any print or electronic media or through placement of signs on the property; +5(3) Provide separate mail service or have a separate address from the primary dwelling unit; or +5(4) Be separately metered for utilities. +5

I'm seeking to maximize my current home equity, by reinvesting in 1 or 2 multi-dwelling properties (duplexes).

Some companies that allow their personal lines forms (dwelling/fire) to cover an LLC, will ask if that LLC is used for any other business.  

I have to have my properties inspected by the city in order to obtain a dwelling permit and that should be well enough, but its not.