I also would pick a more detailed rental agreement over a general one that may not protect you in certain legal situations.

I'm just starting out as a Real Estate investor and looking into educating myself a bit on the legal and tax aspect of owning investment properties.

I doubt it allows for 2 units (it’s probably SFH.) assuming that, you can’t make it 2 legal units (adding an ADU is different, as I don’t think you’re allowed to take space from the main house for the ADU- it’s usually added sq footage.) and even if it allows for 2 legal units you may have to add a second parking spot, separate utility services (read: expensive and a PITA to install.)So the simple plan is to basically do the minimum work needed, as you describe, without permits just to separate the 2 living spaces out.

Good faith (or goodwill) is something that is paramount in business and I believe is also a legal term.

Do not rely on it for legal advice.

@Bryce Baker Get everything written on paper as if it's a legal binding partnership with your family.

The city council passed restrictions on what areas these are legally allowed in. 

So with that being said, how easy and reliable is it to do through legal zoom?

The question is, I can get a lower rate using my own personal funds rather than a corp, but is that possible and legal to do so?

From a buyer perspective those exceptions are mostly moot because these laws place legal burdens on the seller in such a transaction, not on the buyer.