Is it a urban environment or city dwelling where labor will probably be cheaper in urban vs city. 

On a rental property in this environment, we're talking 3.5-5%. 

Between the fact that my returns have come down to about what I could get with a REIT index fund since the property price has appreciated significantly, and this kind of crap in an increasingly liberal political environment, I'm really wondering if I wouldn't be dodging an eventual bullet by getting out now.

REI was always a bit nervewracking to me (I always jumped to the "what if" mentality when I'd think about being a landlord), and as a result missed out on the super low rate environment of the last several years, instead investing my cash into the stock market (took quite a beating this past year!).

I know putting less down on the initial purchase to get started creates a harder environment for cash flow, while easier to get in the game per say.

Variable rate mortgages on second properties are the first to go in high-interest rate environments.  

I may invest in oakland that has even more tenant-friendly environment but they ain't too strict on code enforcement lol.it just not worthed time and struggle since we're OOSI. 

To be quite honest, in this type of economic environment, I would never go above 75 LTV.

Whats unique about this one, and what might impact the inverted yield curve to signify a recession, is that we are in a very low interest rate environment.

This translates into higher resale for you because you have a bigger buyer pool.As @Ryan Mertens suggests, reevaluate the regulatory environment when you decide to move and make your decision then regarding how you want to use it.