People can easily break bulbs when they carry stuff; code officials in one town where I iwn rentals won't pass an inspection with those old fixtures.

You really need to read the exact wording of the property code in CA.

They share any code changes per the lease agreement. 

Make sure you don’t run afoul of city codes.  

For your project, I'd really recommend going the legal route with the city, rezoning if required, and meeting the additional code requirements of a legal suite as tough as some of them are.

It's actually in great structural shape, and it's up to date on medical office codes and special needs accessibility. 

Jax; Duval and surrounding counties ( Clay to St Augustine are rapidly changing, massive town center plans in south, + toll road plans, great areas for living, finding gems to flip, wholesaling per Jax rei great..)just some extremes..hazards..certain zip codes for rehab flipping are not for newbies due to crime, - per my "we buy ugly houses" friend he did his first 09 zip, finished it, everything internal gone, he redid it, stolen again, , chained the AC down in iron cage, and still was cut, hacked into and stolen, plus water heater, appliances, third time hired a 24 hour security guard while on the market, ....i've heard a sort of similar story several times recently..- govt. permit targeting by county has become big issue like never before..militant,,theyre driving around for investors...surprise inspecting...per insurance co. pressure.- I heard famous injury attorney on my church radio today )if I understood correctly) advertising to file for lawsuits related to pipes older than 1975 not being re-plumbed by investors..so no shortcuts..extreme diligence.

They will also pay up to 7K for upgrades do to Ordinances/law meaning the cost to bring stuff up to code.

What makes the interest 100% tax deductible is the fact that you own an income producing property, not the cash you put in or refinanced out.If it's a mix use (househack) or 100% primary use, you might have to get some more insight from a tax professional who can tell you the new 2018-2025 tax code about the $375k/$750k limits for primary or perhaps a prorated amount for househack? 

When do you have to sprinkle a structure by code in the city of Houston or Harris County?