I sold the farm at a loss and took my meager funds – about $400K – and moved to northern CA where our daughter and son-in-law were living.

Go to a local convenience store, see what kind of people live there. 

Building on a lake requires experience with the locale and building regulations.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

@Arianna FarinasI like house hacking locally first.  

I'd advise you to either do a few deals in your local market- I don't know where you live, but yes, deals are possible there and people are investing.

On top of that, you get great appreciation and very landlord friendly laws.

After speaking with a local realtor and lender for quite some time to just get some information, they advised me that we are currently in a "buyers market" compared to a "sellers market."

This section relates only to a fee, charge, or other sum of money required to be paid under the lease if rent is not paid and does not affect the landlord's right to terminate the lease or take other action permitted by the lease or other law.

Often times even if its a single family home or a multi with separated utilities there are some utilities provided by local government.