It goes against the laws of nature or more specifically, the law of the harvest - you reap what you sow. 

@Jon Schwartz with a massive geography and literally being the majority of the west coast, naturally the California economy is important to the nation as a whole.

@Richard PrillermanThey will turn over the property more frequently due to the nature that they are typically moving at least every 3-4 years.

Keep it as a rental utilizing the BRRRR strategy due to the unknown nature of resale?

Fortunately but unfortunately though the housing prices are more affordable in VA which naturally equates to lower asking rent price.

When you say "they questioned me" isn't that a natural response to being told something you didn't know?

Non-agency lenders are also about 100 bps high on re-fis vs originations.Just the nature of portfolio paper. 

All a state level tax of this nature will do is further increase the exodus of high earners and businesses out of CA to lower tax states.Joe Rogan has officially announced he's relocating to TX from Los Angeles and bringing the whole podcast crew along. 

But if that just is not in the cards, then you need to figure out first what (if/any) STR regulations come into play as you go to that size, as some areas would end up classifying that as commercial in nature and you might have other things to manage with respect to that. 

Along with higher unemployment, this will naturally have a downward effect on apartments.