I can see in states like California, you would end up with a squatter tenant pretty easy, and then you're screwed? 

I live in California (Central Coast) and have built a 12-door portfolio in Detroit, which has been a great market for both cash flow and long-term potential.Detroit still offers properties well below the $150k mark, with strong rent-to-price ratios and a market that’s seeing growth in key areas.

However this is something that will for sure affect MF construction this year and sfr is these Tarrifs hold.In the NW I know a lot of lumber comes from CA / BC to be specific but my lumber packages for homes i build in Charleston SC are pine so I know it local wood .. but you know the lumber brokers they will gouge if they get any chance to do so

Tennessee holding steady at #5And of course California came in dead last.

.- Texas vs California Home Construction.

In CA currently only MF properties are rent controlled.

Yes, in states like CA you can often find better leverage using conventional loans and this is a strategy that can be employed.

We want to purchase a property to begin building our rental portfolio but are unsure of the best approach.We live in Sonoma County, California, and I work in Healdsburg.

Ask anyone in California near fire territories. 

I knew the fire insurance would be CA Fair Plan.