Sounds like you're trying to gain traction using short term gains to get critical mass to buy a hold property. 

Giving the current uncertainty of economic situation, should I wait a few months and see what plays out?

It was a well priced asset in a good area that offered a large value add play through operational efficiencies, thus minimizing the risk that's associated with physical value adds.

Without this the rest of you liability tiers may be voided.2 - Umbrella policy - pretty much another no brainer - its cheap protection. 3 - manage debt loads - if you are comfortable keeping a higher debt limit, it is a strategy to reduce your net worth and make that target smaller. this comes into play when considering tapping equity in existing properties.these 3 should get you started. but its all up to your own risk tolerance.

I'd love to get to know other local investors who have made similar plays and get some advice on the areas I'm interested in investing in.

If that's the case the IRS lien is not extinguished by the foreclosure and therefore the 120 right of redemption does not come into play. 

I understand the intention but have seen this play out bad, many times over.  

Welcome to the BP forums and to the investment game that pays you to play!

@Christopher SmithI do not think it is fair to lump both prop 15 and 21 together as inherently bad. 15 stands to serve the important function of leveling the playing field for new businesses and start ups in California, who are currently paying an unfair amount in property taxes relative to older established businesses.

I would like to hear any stories in which these were factored in and how it played out, along with some suggestions on what to keep an eye out for concerning corners being cut.Thanks!