I'm hoping to tap into the wisdom of fellow STR Management operators here.

Landlords mistakenly ASSUME all PMCs offer the exact same services and operate the exact same way, so price is the only differentiator.So, the first question they usually ask a PMC is about fees - instead of asking about services.This also leads them to ASSUME simpler is better when it comes to management contracts.

So your 35% operating expenses makes sense and seem plenty conservative to me.  

Each should be able to operate on its own.

Commercial Revenue Generating properties like office buildings, apartment buildings, retail centers, etc (banks call it "CRE" lending) are typically evaluated from their net operating income, not gross.

But overall, with a young family, I would be cautious about gambling the whole farm (Brokerage account) on RE investments.

This will create your new basis.From an operational perspective, you might want to touch up a few things on the place to make it more rentable. 

One thing to consider since you are a California resident investing is the compliance requirements for LLCs incorporated in California or operating as a foreign entity here - the rules here are different than most states.  

The other is a smaller operation which does a lot of business in the specific neighborhood the house is in.

Currently I own a large real estate company and still get some great value out being in his inner circle of real estate operators.