@Gary Garrett You have a long winded question here but I recognize the pain.

I recognize rents have gone up nationwide, but 20% in my San Diego metro market is ~$500/month rent increase on average. 

AZ does not seem to recognize Series LLC, so I'm wondering if I could set up a Series LLC in either WY or TX, then use it to purchase properties in Ohio or Alabama?

California does not recognize series LLCs.You also want to look at whether a pass-through entity helps your bottom line and your taxes.

Even though I’m recognized as an scorp?

I am thinking that by charging $20/mo for the pet though, and charging $20/mo less for the rent increase (say an increase by $100 instead of $120, for example), I look like I am not increasing the rent 'as' much but am also recognizing that the previous landlord let them get away with no pet fees, which is not industry standard.

@Michael Shea I'm not a tax accountant, but I've done the rent by room strategy for over 6 years as a house hacker, and I've recognized rent by room tenants rents in the Schedule E part of the tax return.

You might recognize me from Fundhomes - I'm the Head of Growth and a Co-Founder.

One other potential concern that could arise in the field, is the basement unit in the case where it happens to not be unit which is "Legally Recognized" by the City.

I'm not the biggest fan of insurance, but have to recognize they will pay premiums for their clients to stay in homes for 2-6 months as the insurance company gets the home back in order.