I can save a fair bit on state tax and rent as I'm currently living in California. 

In California you need a closet to be considered a bedroom plus an actual door on the room.

I invest in California and one of the other markets you mentioned, Indianapolis.

Understand Your Legal ObligationsWhy: Tenants may have the right to withhold rent, repair-and-deduct, or terminate their lease if repairs aren’t made promptly.How:Review local laws for habitability timelines (for example, in California, landlords have 30 days for major repairs).If repairs exceed legal deadlines, consider offering a lease termination option to avoid claims of “constructive eviction.”5.

This California law eliminates much of the red tape by bypassing environmental reviews and subjective local approvals, creating a faster and more predictable development process.

hey @Daniel Han @Arash A.Account Closed    and to all of you other posters on this thread i know its a few months old, if you would like my real estate office is in Playa Vista ca. near Marina Del Rey, give me a 1 weeks notice and we can all meet up at my actual office maybe on a weekend where we run our flips and investing operations from lets all chat and see if we can close some deals together.

It always seems the people that don't live in CA or have ever lived in CA are always the one leading the bandwagon of "why would anyone live in CA?".

I sell land to homebuilders and commercial developers in southern California. 

Quote from @Matthew Becker: I would consider a C a bad property.  

You only have to worry if you are in a Pinko Commie state like WA or CA.