This because the market conditions in Califoirnia are tougher (prices, low returns) and manly because I have friends that already invested in Florida with very good results. 

It's a tougher market to be successful in than many others.

60 lb is not a large dog, mine is 100 lbs, apartments are tougher but I'd probably just increase the deposit for the pet, depending on local laws and customs pet rent may also be something you can do.

If I find a great deal, I have no hesitations to jump in, but it makes finding a great deal a bit tougher. 

The FTB is tougher than the IRS.Now if your advisor is charging you for a no activity or limited activity filing, yes, you are getting hosed.  

That being said, much of what I read here is saying that Utah is one of the tougher places to start out in REI.Any advice on where to focus on?

The banks are just originating and taking fee's for doing so.and you will see Portfolio loans  ( loans they actually keep ) get tougher..  

Will capital be tougher to raise?

I think Dupage County just took a similar measure overnight too.I think this will be come an big topic on BP in the next couple of weeks when tenants lose income from reduced or total loss of hours added to the fact that they will learn the eviction process is even tougher to accomplish then it normally is in and around Chicago.

The reason bank loans became much tougher to obtain last time around, was because there were a ton of new regulations and the creation of the CFPB.