What you can do with more units is mitigate that risk and structure the deal such that even if you have a vacancy in a 4plex, the cost of operating that property is still covered the other 3 units - not possible in a duplex in Anchorage that I've seen.I am also active duty, but have a background in real estate, and my wife is currently a realtor who specializes working with military clients.

However, maybe something to look into if he has insurance or bond under his license (if he has any type of license at all!?)

Consider also contacting the California Department of Social Services, Community Care Licensing Department to see if there are any special requirements. 

You'd have to be a special kind of bold to try to skirt the permit system in general, let alone with having an inspector already asking questions.

It's really hard there to get people out for non payment, to the point where there are professional tenants who specialize in scamming free rent. 

My job for this investor (who is an agent and interior designer) was serving as an analyst, constructing proformas, consulting on my opinion on macroeconomic markets and outlooks for real estate, consulting on microfinancial decisions (I am an Economics major with a specialization in International Macro-Finance & Econometrics), and managing day to day duties of rehabs on site.

It isn’t that you can’t it’s that it takes a special type of landlord to manage and deal with that type of property.  

Personally, I am a USAF veteran with a now w-2 job however my partner and brother @Ashton Levarek is 20 year active-duty special forces member and we have a built a business with multifamily syndication throughout it all.Time block.

There are some wonderful options of REI specialized tax professionals here on BP. 

In Oklahoma, your able to still find those are great but it take a special kind of owner to love those properties.