I see you are in OP and I went to high school there.

#1 and #4 seems like overkill for a 5 to 30 min drive.ISPs can see individual IP addresses so I think the OP is OK if any user violates the terms, conditions, and/or AUP of the ISP but I agree I still wouldn't provide the internet. 

The OP’s building is a trophy property in an amazing part of the city.

Freddie takes the 5% LTV or less down payment advantage over fannie however freddie has some "other," downsides as well when compared to Fannie mae's 3-4 unit guidelines.There are other programs like freddie mac home possible that can do 5% down up to 4 units but you're income restricted to 80% of the AMI (area median income) so you're in parts of town where it might be less favorable to owner occupy a 3-4 unit house hack as the OP @John Smith wants to buy in.

Not sure where the OP is from.

OP.  

OP was discussing STR without a permit. 

In the case of the OP, it's California so the standard to meet may be higher.

Literally nothing to solve the issue the OP has stated. 

In OP's case, Los Angeles allows the utilities to be put in the tenants name and even has a "landlord program" where it can easily get switched between the landlord and tenant without any disruption or additional charges.