As others said out of state can be more challenging based on location but local or out of state both can be done. 

I did a little digging into zoning laws which may explain it.

Theyre currently busy with over-regulating RE investors at the moment with vague wholesaling laws, so we'll see.

Would definitely check local zoning / code enforcement laws as well.  

One of the key challenges I’m facing is understanding the financing options available to someone without Canadian residency or a local credit history.From my research, it seems that a 35% down payment is often required, with interest rates around 7.5-8.5% for non-residents.

I honestly wouldn't trust anyone else with my clients but him when it comes to that local market.

If not, I most definitely would reach out to the tenant, introduce myself and ask if they are going to be out by the 31st or the 1st, I would communicate  to the tenant as if I know they were told they are expected to leave, otherwise you may find they "do not know" they need to leave even if they actually know they need to leave....In the case they claim they are not aware they need to leave, you would need to follow the laws in the state you purchased the property, usually you can find that info on the states judicial branch or speak with a landlord tenant attorney. 

I am leaning on local first for my next investment, but not ruling out an out-of-market opportunity. 

Question about the new CA laws ...

As Jay mentioned they must be NMLS licensed if owner occupant of in several states even commercial needs licensing.The NMLS is like the database, each state has a division of banking that oversees lending requirements then you also on the federal level have CFPB as well as consumer protection laws.I want to add that I believe yesterday the CFPB is undergoing changes, but if it goes away that does not mean that many of the laws in place especially consumer protection laws would go away.