I could put the 3.5% FHA loan route but not sure if I want to deal with FHA requirements.  

Obviously they require electrical near by.

I don't want to change our software for accounting / management because I have another LLC that requires quickbooks. 

There shouldn't be any need to negotiate them as you would negotiate rent, they just are what they are, and the owner is required to provide proof of those costs to you.

There are a ton of folks in the LA area . . .

Find out what their requirements are.

The border income that you listed is only required when purchasing a primary residence, you can't use the roommate tenants , even with existing leases to help qualify for the mortgage.If you are buying it as a investment property, you just need to record it on your tax return for 2024 tax return and in 2025, when you file your taxes, you will be able to count it positively for your debt to income ratio.

@Jonathan Klemm   My plan is to eventually turn the two units into a SFH, which I know would definitely require permits. 

Bring on a partner with at least a decent FICO, experience in rehabbing would also help, but not required. 3.

In the end, we rent each room by week, but require a 30 day minimum stay up front.