What you're going to want to do if you truly want to avoid potential regulations is to avoid "Urban" markets, which have a risk of future regulations, and look more towards true vacation markets.

As you move up the risk spectrum, the projected returns should be higher, but you need to understand there is more volatility in the ability to achieve that return, meaning: a value-add deal with some vacancy, 3rd-4th generation space, more local tenants, should project a higher return than a new construction, national credit tenant base property, because there is more tenant risk, physical condition and obsolescence risk, vacancy and lease up risk, potentially retail corridor risk, etc.  

The measures also have the potential to shift investment to other cities in L.A.

That gave us time to hold the property as a rental and discover its potential use.

I think the rents would be lower but potentially less headache.  

Where to start:Just a couple of considerations:Residential...you could possible get a check on a lease in a week or so from the day you start, probably not common, but potential. 

question for you guys. how is the rental demands in the 43623 areas. ive came accross few potential properties. but not sure how rental demand is. ive checked zillow and seem to see the same properties "for rent" posted for over a month. is there is little demand in this zipcode even though its in a better area?

If you're looking for an emerging market with long-term appreciation potential, Columbus is a good market to research.

Once the property is renovated you can work on permanent financing, and you potentially have a property with minimal amount out of pocket. 

With rental comps at $3300 and a potential mortgage surpassing that, you could end up putting money into the property monthly, so be ready for that and consider possible vacancy periods.