The current restriction is two, and the City is looking to bump it to 5.  

✓Second Home Requirementsmust be occupied by the borrower for some portion of the yearis restricted to one-unit dwellingsmust be suitable for year-round occupancythe borrower must have exclusive control over the propertymust not be rental property or a timeshare arrangement1cannot be subject to any agreements that give a management firm control over the occupancy of the propertyhttps://selling-guide.fanniema...

The real reason I think most people are bullish on Austin is because of the diversified economy and the restrictive housing regulations.

I'm sure you are aware of conventional lending restrictions to LLC's...so, your search for a lender just got significantly more narrow.

If the property is platted, you may not be able to re-survey due to restrictions on minimum lot sizes, setbacks, etc.

However, when restrictions from travel and home sales was lifted the pent up demand created a high volume of rentals.

If the tenant is on a month-to-month, you can give them a 30-day notice of termination - for any reason - and part ways.Of course, check your local laws because your state, county, or city may have more restrictive rules. 

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.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.

@David Hernandez we don't have any cash out restrictions or overlays, but unfortunately I'm not licensed un Utah or I'd be able to help you. 

For me, adding more restrictions than that will cause me a bigger loss by limiting the potential number of guests that can book.