I wouldn't touch California, cost aside, given all the wildfires and heat waves.Using this framework, I ended up purchasing a place in Nashville for STR purposes.

an investment of money due to2. an expectation of profits arising from3. a common enterprise4. which depends solely on the efforts of a promoter or third partyTherefore, Joint ventures with active management don't ring the bell and as a consequnce don't trigger the public protection framework.

My belief is to, first, build the foundation and the framework for success before even attempting to scale.   

In order to qualify for the tax credit, the rehabilitation must meet three criteria: at least 50% of the existing external walls must remain in place as external walls, at least 75% of the existing external walls must remain in place as either external or internal walls, and at least 75% of the internal structural framework must remain in place.

Your question is specific to you and your situation and needs to be analyzed in a framework of your overall financial picture, and more important based on what your goals are.

The LOI builds the framework for the PSA (Purchase and Sales Agreement).

The zoning ordinance is there in case there is a problem, then the zoning official has some legal framework to enforce better behavior.

I'm a HUGE believer in plans and even I have to admit that no matter how detailed I make that plan... it's really just a guide...a framework. 

It can expand ideas, provide frameworks, provide contrasting viewpoints, inspire, and give tactical untailored advice. 

Whether this would be viewed under the BFP doctrine of well-developed AZ case law or whether the statutory framework for transferring real property by affidavit (outlined and analyzed in this case: https://caselaw.findlaw.com/court/az-court-of-appeals/146015...) would apply depends upon the property value and all of the facts of the case.