What restrictions will I be faced with and should consider with the property?

The HOA restrictions specifically say that "Pets must be kept in a manner that does not disturb the peaceful enjoyment of residents of other lots" and one of the terms of the lease is that the tenant abides by the HOA restrictions.How would you handle this if it continues after you warn the tenant, and the neighbor keeps complaining?

The only restriction is that you must execute a direct trustee-to-trustee transfer. 

Local jurisdictions cannot be more restrictive than allowed by the Ca rules.  

Do you have restrictions on how much and how often you can raise rent ?????

Forgot to mention.....usually when zoning changes the “non conforming use” is grandfathered in with some restrictions.....if vacant for a certain amount of time or if destroyed, the exemption for being grandfathered in goes away.

@Anthony Finger Renting a new house should be legally allowed, unless it is a condo or coop that has some sort of renting restrictions.

The book is referring to the passive activity loss limitations imposed by Sec 469.You'll still be able to use expenses to offset revenue, you just won't be able to use a tax loss on the rental to offset other taxable income if you're above $150k in AGI. 

With conventional loans, the sourcing of down payments seems to be very restricted. 

Do their HOA restrictions allow tiny homes (essentially RV's) to be parked on lots?