The city has issued licenses, they are just very limited, hard to get, and there are a lot of restrictions around how it can be used. 

But if you find the right builder, having a new construction cabin is so much better for rent and to limit expenses, its well worth it.

A master lease to the organization structured with an annual escalation clause and a term limit - like up to 5 years - was a recommended way to get a contract. 

Yes, there is a ban on less than 30 day STRs within Ojai city limits, but it is my understanding that outside city limits you just need a permit with Ventura County, the same as Malibu.

There are advantages to many real estate assets, but that doesn't mean you invest in the them just to get a tax liability.

Did you ever find out more information about insurance and liability?

@Kwok Wong With limited exceptions its customarily the lower tier neighborhoods that present both BRRRR and cash flow.

If there are no boarding house limitation to the number of unrelated persons, does this structuring matter?  

LOC's can have negative effects on your future purchasing power if not set up correctly and keeping in mind you can "never" use an LOC as a reserve or asset.It will always be a debt burden and can over inflate your back end debt ratios depending on the W2 income and your liabilities.

Limited partners usually cannot coattail REP status.