The title company uses that to pay off the existing mortgage, and you get clear title. 

Both of my properties have existing mortgages in first position and the existing first mortgage lenders are recommending a cash out refinance.

There are very strict regulations for Rental Properties, inspections, permits Etc. 

Im looking for a good  real estate attorney who specializes  in real estate investing and has experience doing subject too existing finance deals...

My focus is on decreasing maintenance, improving efficiencies and maximizing income on my existing investments.

@Michael Fratalia ULI is by far and away one of the best organizations and events in existence.

Should I take out a traditional mortgage (conventional loan) or use the equity in my existing home (Equity Loan/Heloc) to purchase this other property?

buying an existing mobile home already situated in a park?

The only things different about Section 8 are they have an additional income line (assistance) and some additional regulations on the property as a result of the Section 8 lease and inspections.  

Depending on that, I might consider a couple of options. 1) bring the rent to market but suggest to the tenant that you would consider rolling back after the outcome of the Prop 10 vote. 2) Just do the 5% if you think that although the City of Oakland will have the power to implement vacancy control, they may take time to decide how to change any existing rent control system in place.Bear in mind, I am just thinking out loud...I do not know Oakland but also am thinking there may be opportunities for buyers being created because of this Prop 10 uncertainty.