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.

Maybe that area has a certain special restriction of which your architect is aware that I am not privvy to.

If you’re using leverage, be extra cautious with your underwriting to ensure the deal still works at today’s rates.Economic Uncertainty: Inflation, potential recessions, or shifts in demand could affect rents, vacancy rates, and property values in some markets.Increased Operating Costs: Rising insurance premiums, property taxes, and maintenance costs can cut into profit margins, particularly for buy-and-hold investments.Regulatory Risks: Some areas are increasing restrictions on landlords, particularly short-term rentals.

Hi Everyone,I am looking to get started with doing rental arbitrage with my cousin who is a Green Card holder, however, I am on a H1B Visa which restricts my ability to earn income "actively".

They tell you right at the start in which states you can apply this freely, which states have certain restrictions and which states you cannot do this without a license. 

@Placeholder PlaceholderOne word of caution I would advise: If a community or local government is enacting restrictions and also regularly enforcing them, then its often a reflection of the local community sentiment which increases the chance of a neighborhood or nearby resident calling you in if they think you may be running an STR.

Quote from @John Underwood: LOLI'm certain they will add restrictions to prevent people from doing this.

They have a first post restriction, but they have VAs monitoring that before it gets to moderators first and they just let everything through.

California is the only state that has essentially put a rent control type of restriction on home owner insurance premiums.

The seller has the two lots legally separated, but due to deed restriction imposed by the subdivision development, found that building a house on the “tennis court” lot was not allowable.