Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Where are you financially?

I have not reached full financial Independence but live very comfortable in Fresno CA.

Do their grunt work so to speak, to be close to the action.

Hello Matthew,I am glad you are on you way to financial freedom.

Find out how much the fines are likely to be and take that amount out of the deposit. if the tenant challenges it the HOA will likely have made a decision by the time your tenant takes any action. 

I’m pretty good at goal setting and laying out financial plans.

Financial freedom How did you find this deal and how did you negotiate it?

Out of state investing requires alot of trust on your part and I'm going on faith trusting the acquaintances that I met at a local Financial Independence group.

I hope you take action.