@Christopher RamosWelcome to Bigger Pockets.

@Cheyne R SexsmithWelcome to Bigger Pockets.

@Joseph San NicolasWelcome to Bigger Pockets.

Looks like fourplexes aren't exempt, only three unit or fewer buildings could qualify for exemptions if owner occupied:Oakland Rent Adjustment ProgramOakland Rent ControlA Guide to Rent Control in Oakland

The end buyer came up with the none refundable earnest money which was actually three thousand dollars above the actual promissory note. 

(e.g. you could income strip from Sch C to Sch B and avoid SE taxes) Effectively you'd be loaning yourself money (i.e. from one pocket to the other).Bonus points for authoritative citation.

Hi Ryan,Here is how I calculate the reserves for these smaller multifamily deals (I own three 4plexes):Essentially, I determine the remaining life of the major items, like HVAC, water heaters, roofs, siding, etc.

For example, my plan is to focus on three passive income sources 1) real estate, 2) stock market cap gains and dividends, and 3) online business models such as blogging or Amazon FBA.

If you only spent money you borrowed from HELOC to buy these properties, then you just created FREE positive cashflow with $0 out of your pocket!

I look forward to the positive feedback and support I constantly see throughout the Bigger Pockets Community.