Additionally, involve a real estate attorney to ensure the transaction aligns with legal requirements and protects both parties’ interests.

Plus by going with you, they won't have the benefit of an agent's errors and omissions insurance, the support of their brokerage, and the experience an agent has in protecting their clients from everything that can go wrong in real estate transactions.

Warren Buffet said the most important part of investing is to protect your principal. 

This may be needed to protect you from claims later.4.

If selling properties, a 1031 exchange defers capital gains taxes by reinvesting proceeds into another investment property, while Opportunity Zone investments can defer or eliminate capital gains tax over time.Long-term rentals should be held in an LLC for liability protection and tax efficiency.

What many investors do is that they will purchase a handful of REI props in one market and then move on to their next/different market to diversify their portfolio and for added asset protection. 

Requiring occupant to have renters insurance is another possibility for extra protection.

I will give you the common-sense answer below, but this is California, where common sense doesn't exist.A mandatory evacuation is outside of your control, so you shouldn't suffer financially because of it.

Very conservative approach that protects the seller.There is a long thread that covers what I'm talking about atPace Morby Mentorshiphttps://www.biggerpockets.com/forums/79/topics/1001612-pace-...  

So buying the right location will become increasingly important here to protect you in the long-termFood for thought.