Might get undercut in  this rate environment. 

They also have the right to screen potential tenants and establish their own rules and regulations, such as pet policies and late fees.

Most private money or hard money lenders will not want to use a personal residence as collateral because of Dodd Frank regulations regarding how to handle loans for personal residences.

In NJ there are laws and regulations governing how a landlord must deal with property left behind by tenants.

It is extremely important that you find competent people to work with in this economic environment. 

Another option is bringing in outside investors, but this involves a lot more regulation and is typically for much larger properties.A HELOC could be a way to secure some needed cash, but you need to make sure the property you buy can produce enough income to make all payments, including the HELOC.

How I should go about responding to these issues, without creating a nightmare environment?  

@Kyle Allder the "on paper" is what's going to come back and bite you...1) CA is not "unfriendly" it's probably the most hostile environment for landlords, SD as a city actually takes it even higher!

For example, Biggerpocket is extremely useful for the technicality aspect of real estate investing (eg, extremely useful information on how to manage/work with tenants; to understand tax rules and regulations and understand what needs to be done during certain situations) ; but it's less useful when we're asking for opinion for investment (which city to invest,etc).

Lots more paperwork and regulations when doing a rehab loan but can be complete worth it if done properly and with the correct team in place.