Of course, with all things, the answers to all these matters will depend on the circumstances.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.

@Nitin Gove check with the new builds what the guidelines and restrictions are for rentals.

Be aware of local regulations and potential restrictions on short-term rentals in the Tahoe area.Property Management: Decide if you will manage the property yourself or hire a property management company.

If the home is OK to be zoned for used mobile homes, you'd have to check on any restrictions (i.e. size, age, etc). 

I've stayed in both hotels and Airbnbs where they restricted how low or how high temps would go.

When looking into it briefly, it looks like Mackinaw City, Traverse City, & Petoskey are the most restrictive on AirBNBs whereas Boyne City and Harbor Springs allow them with a permit, any information on how difficult it is to get one of these permits for an out of state investor?

Though self-direct rules allow a broad range of investments, these companies restrict you to their stocks, bonds, mutual funds, etc.

In addition, most bank owned properties have no assignment clauses in them and often deed restrictions from reselling for a period of time. 

Are there any restrictions on whether I can use it for other expenses or should they stay in that account? 

Of course, with all things, the answers to all these matters will depend on the circumstances.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.