Real estate takes time and scale to produce reliable cash flow.

It's very easy to make one tiny, minor assumption to fill in an unknown that completely changes the context and consequently the answer - I've caught myself doing this a few times.As far as the legal responsibility for the debt goes with Subject To, my guess would be that the contract basically provides a pathway for the seller to pursue the buyer for recourse related to losses they suffer from the default of the original loan, like a form of indemnification, but does not absolve the seller of responsibility for the debt.

When they run out of Canadian SPF the prices will escalate on locally produced lumber.  

You mentioned that you are not a W-2, but that is not the only status of income producing individuals. 

I've decided that finding "deals" in Arizona is unnecessary as there are other markets that one need not search high and low to find something that can produce a decent cash-on-cash return.

Be sure to check with your lender to confirm their specific criteria regarding the property's condition.In short, fixer-uppers can qualify for DSCR loans, but the property either needs to be producing rental income or have a plan to do so after renovations.

Santarelli, in two YouTube videos explains the promissory notes investment opportunity (Link), and mentions some of his other ventures including, “cannabis and crypto investing” and producing/co-producing six new Broadway musicals.

I suspect that whatever the reason, CA experienced investors could state why it is BS.The reality is - CA RE has on average produced better return than any other state. 

Do you believe it will now be more cost effective to hold a license or do you believe the expenses will go up with what I assume will be a flight from the business by low producing real estate agents? 

A tiny % of people can avoid the hard work by getting creative or lucky, but most have to work hard, take action, and be patient.