This California State Legislative code outlines which encumberances will survive a tax auction (see below in italics), and I want to make sure that a Deed of Trust with Assignment of Rents does not fit into any of these categories.

All you will come away with is an uncertainly...Without a leader one will fail...

You will have to bring this up to legislators and try to change the law.

This takes a lot of work and effort for uncertain and unsteady benefits.

I find that some will focus on the negatives while being uncertain or have a lack of knowledge on the positives. 

STRs have been plagued by negative market news and legislative uncertainty. 

The consensus, not surprisingly, was that we are in uncertain times but there are certain societal and market fundamentals that make residential rental property, aka SFR and BFR, extremely attractive asset classes, short-term, mid-term and long-term.

Once you understand a little more about the legislation and laws in place the tenant laws will not be so scary.For a 10k a month cap rate you are looking at inventory that would either be a luxury single family home or a multifam that would be 4 or more units.

Even so, if you aren't submitting any claims to CMS I wouldn't be concerned about legislation.

While this legislation is proposed nationally, its lead sponsor is Sherrod Brown who is from Mansfield, not far from Cleveland.