.This is going to be hard on the bigger operators with very large apartment complexes in Oakland--I wouldn't want to buy a Rent Roll in a Class A, B or C area consisting of unknown cut throats and tough to deal with residents.Plus I wouldn't want to have my property managers quit due to not being able to deal with hard to handle types. 

Most tenants will agree for those terms and they might need to know it's for their and your safety and piece of mind. 

The only way I see you being denied is if the property does not pass the physical inspection, which simply requires a clean home with no safety or health risks.

The walls have been cut to widen and other modifications made to accommodate.

@Sabri Isbikhene for safety it's definitely a market to consider.

Personally, I have joint ventured on a deal where I put up the down payment and my partner manages the property for a 40% cut of profits and equity.

When I went out to inspect, found he didn't have the energy to shave and get a hair cut either.

My construction time was only four months and I could easily have cut that down to two months.

Maybe look at FHA 203k...google it..At the end of the day if the numbers make sense in your area then it's pretty cut and dry...Also if your circumstances allow you may want to actually reside in the in-law and rent out the rooms individually in the house which will almost certainly generate more revenue. 

@Saman Jafari, buying close to home can provide more confidence and insight into your investment and you can gain an edge by having local market knowledge.