If things get testy, I consider myself  to be in the manager (or parent) role: "them's the rules, you agreed to follow them, here's what happens next." 

You could say the dog is not allowed inside the house, and they have to clean up after the dog every week, but be prepared for them to break that rule pretty much every day starting on day 1.As an aside, in some areas you could have trouble if you disallow dogs. 

Investing in CA will maximize your equity/loan pay down (vs cheap properties out of state), maximize the total value of your treasured fannie/freddie loans, save you travel expenses, leverage your money to higher appreciation, low property taxes (as a ratio), and low insurance rates (as a ratio).There is no rule that you have to invest only for appreciation or only for cash flow.

They will not like no longer being able to run the show and my experience tells me they will go to great lengths to undermine whatever new rules you put in place.

It will pass the 1% rule per unit.Does anybody think this price after all expenses is to high ?

@Michael NievesThere are rules about occupancy when you use a VA loan.Intermittent occupancy due to work is okay as long as you can show that you have a pattern of continuous residency in that community...

I couldn't get any clear hard and fast rules but if it's 6 stories and below, depending on the year built, it's probably wood frame.

The generally accepted rule is to wholesale the properties for 70% of Fair Market Value (FMV) less the cost of repairs. 

Conventional loans, those that meet Fannie Mae/Freddie Mac rules, are only available for properties titled to an individual. 

@Robert Shelton I'd also encourage you to maybe try to figure out some zoning/permitting restrictions to that before you do it.