Then, upon stage 2 (completion), the money in these accounts would be invested into the property, which would be applied to the principle of the mortgage.Legally speaking, what would this type of relationship be called?

The interest rate you speak of a compounded cost and the CoCR is a simple interest applied to one year.Once again, percentages rear their ugly head and lie to us.

During the second semester, I applied to become a member of the mentorship program that allows participants to learn and develop resume, interview, and network skills, along with learning and applying technical skills such as real estate accounting and valuation fundamentals.

While my unit is 1 of only 8, so the large numbers might not apply in my specific case, your point on the potential to limit non-owner occupancy is something that never crossed my mind. 

You can apply on the website, but there aren't any guarantees.

Learn and apply what you learn, Bottom line, find a deal, everything else will take care of itself,Good luck 

Am not sure if code 396 applies to specific counties in CA or to all of CA as a whole.

Im rehabbing both upstairs and downstairs and planning on house hacking (living upstairs and renting the downstairs)How many of you apply for permits from the city to have it permitted as a Duplex and not a single family?

So may question is if I own a property in an LLC will I still be able to apply for an FHA if I were to buy a multi family and live in one of the units?

Because it is a personal decision which needs to be based on education which is then applied to your personal situation.I know what I might do in a similar situation (as would other people).