We are transitioning into the US Market, and looking to partner with established and experienced developers. 

Small unit, newer renter I will take personal references from neighbors etc. combined with an established job in the area or a new job with a strong employer in the area.

Its a gamble, and the quality of these types of things vary, so we'll see.

These places will be more expensive, for a reason.Now I do think that there is some opportunity in certain areas of upstate NY for short term rentals, however upstate NY is not a well established travel destination so your occupancy will probably be low and highly seasonal but this method is viable.

I was wondering what everyone's experience with establishing a legal entity for REI has been like, and when do you recommend a person to do so?

FF is just one source and good for establishing a baseline of sorts, but I agree with you that it's going to be beneficial to market on other sites, including the OTAs.

And frankly, you have similar or nicer beaches in well-established tourist destinations much closer so why would they bother?

This entails carrying out in-depth market research, examining prospective properties, and drafting a comprehensive investment plan that details the risks and possible rewards.Establish Credibility and Trust: It's critical to establish credibility and trust with possible private lenders.

Once the bones of the network are established then it's a matter of repetition.CAN you do it with no money down? 

In my opinion - no, you cannot establish it as an STR without any booked visits.