It's funny how nobody demands regulation to make Escalades more affordable....... 

Not sure if its a regulation issue or what it is, but I've only been able to even entertain the idea of doing business with HMLs on the MN side of the border. 

Two contributing factors are high construction costs and regulations that make obtaining a construction permit difficult.California already has a large housing shortage.

Usually the landlord regulation is not applicable if it is SF with owner living in the unit, just saying.

For older demographics, consider the availability of medical centers, entertainment, and restaurants.Buildings/Permits: Assess the city's growth compared to previous years.Determine if the city can accommodate future supply.Government Regulations: Examine the city's efforts and the type of businesses they are targeting.

Many people are finding themselves in the same position as you due to local regulations.

Is the tenant responsible for all interior and exterior pest problems or is it strictly interior?

Depending on the purpse of the BPO and regulations in your state, you can just call a broker that you like and have them give you a BPO. 

There's a limit to how much repairs can cost vs. a complete raze and re-build(will check current regulations to see what they are).My only concern are the liens and the problems inside.

I keep telling my fellow US investors how spoiled the are every time they start complaining about something (taxes, fees, regulations, rent, compliance, etc.) in the USA market ;-) Try making it in Europe and you'll need to toughen up by bringing along more time, patience and expect less yield.