I've seen some older threads but I know things are changing quickly in Los Angeles.  

Not too much need for major structure changes. 

I spoke with my lender and he told me FHA recently changed their rules...he said if I already own property then I can't get an FHA loan for a primary residence (even if I have 20% equity in the rental properties).

I know you said it's in a multi-unit zoning but you could run into many problems making this change.

All bets are off in a house that has a lot of asymmetrical rooms, extra corners, or a lot of ceiling height changes.

The problem I have is my niece wants me to buy her house at a deeply discounted rate in fact she's even willing to take a $30,000 loss to to sell it fast, it's a very nice spacious 4 bedroom home for $130,000 in an area where houses sell for close to $200,000 but it's in Chicago where they have gone crazy as far as property taxes are concerned.

We have a local Facebook page where everyone post what they have for sale or rent and other people post what type of rentals their looking for and those 2 and 3 bedrooms go fast.

. - Reuben (In progress of changing name on profile)

After I become a landlord for a few years, my mind is changed, I do not want to buy properties close to the college anymore, because my mindset is the same as @Alex Deacon now.

@brandon Davis,I do live in Tomball and as Fred mentioned, this is a fast growing area.