I think its pretty well thought out law.  

I'll send you a DM on a recommendation for a law firm a lot of our clients use.

First, Texas is one of the most landlord friendly states in terms of laws.

I am seeking an experienced tax advisor (preferably licensed in CA) with strong expertise in US and German tax law, particularly in real estate investments, mixed income (W-2 & self-employment), and international taxation matters. 

There is no statutory holding period - only what you feel you can demonstrate your intent to be. 

If you're going to make a lot of changes, I recommend consulting an attorney to ensure you're updated on the laws.

New Jersey state law allows for owner occupants to have much more freedom. 

There is statutory, and Fannie/Freddie guidelines, that explicitly exempt these transfers from being subject to the Due On Sale Clause...asset protection/estate planning purposes are covered.There's always the question of "Do I Need an LLC to Invest in Real Estate?  

“Passing Good Cause is not only a step toward tackling these systemic issues—it is the vital foundation to any meaningful action.”In a free market economy, how will those providing housing react to a law that forces them to house non-paying tenants for free? 

There is statutory, and as you pointed out, now Fannie/Freddie guidelines, that exempt many transfers from being subject to the Due On Sale Clause...asset protection/estate planning purposes are covered.