Might want to dust that law book off on "Single Action" as well as "Anti deficiency" rules in California.Talk to your significant other about risking every penny you have on an investment or, talk with your banker or bookie about getting cash to buy.

The landlord tenant laws are also very fair here. 

To answer you question of why protecting yourself from liability in another state vs your backyard may be more concerning is just that you would have to familiarize yourself with the laws of the other state and potentially pay significantly more to form protective entities(Texas LLC's are free once created for example whereas CA one's are $800 annually to maintain).

At this moment, NE Fl is being fueled by the new property tax laws effecting people in the North East.  

As far as raising money and paying a finders fee for bringing 'investors', you'd be better served by researching the SEC laws. 

There are no laws against doing this.

New tax laws allow us to take most things as a one time expense instead of depreciating it.

I also learned the laws, made sure I did everything by the book, and covered all my bases.

If they're month-to-month then you just need to give them 30 days (or whatever your state/local laws require) notice of the rent increase, however seeing as the current owner has not increased rent and you're the "new guy" coming in, don't be surprised if the increases are met with anger/hostility.

Also make sure you’re in compliance with any state laws on how much you can except from tenants in any particular window.