Probably if the heat is the issue using RUBS might be an option so that you apportion the  utility costs among the tenants in accordance with square footage or occupancy. 

utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshareAt an average of 77% occupancy for the area @3.7k a month, you would be cash flowing substantially of at least 20% coc Y1 (including the agents fee), y2 30+%This one below too seems to be an okay investment as well for LTR https://www.zillow.com/homedetails/109-Baity-Dr-Asheville-NC-28806/53166423_zpid/?

Details of property, 4 units plus 1 garage. 1x commercial space (coffee shop), 1x studio, 1x 2 bedroom, 1x 3 bedroom.

All they are trying to do is comply with the law which should not be an issue right?

Policies in CA change faster than coffee pots at Starbucks.My question is how and where do you guys gather information about local county laws regarding SRT and REI in general?

TIC's might be an option if you like larger assets

You think that would be an easy proposition, but that won't find a mentor, that will find every Tom, Dick, and flash in the pan.

So it doesn't have to be an either or choice to have benefit for you.

It may be an opportunity to completely bulldoze/haul the remainder of the house and build better.   

I only ask because I know this to be an attractive way to get in on a first deal especially.