However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

Cost vs.

Cost of a built in closet around $500.00.  

It's great for cashflow and our entry level costs are lower than a lot of other markets.

If I could deploy the same amount of up front cost to purchase an up and running portfolio.My calculations tell me that I can be cash flowing much more if I spend the money on a portfolio or complex.

We are looking towards STRs in order to lower our W-2 taxable income via cost seg and bonus depreciation.I believe my line of work qualifies me as a REP, but what I am not clear on is whether I would still need to meet the 'material participation' requirements in our rental business in order for our losses to be non-passive.

Paid platforms often offer additional features like market analytics, off-market property leads, and filters for investor-specific criteria, giving them a leg up over free options.Exactly, most platforms have to offset cost somewhere because of how expensive it is to keep the data up to date.

And that depends on how you view the costs. 

Usually the numbers don't work to build in these neighborhoods, unless government tax credits, etc.Do you see the problem with your two statements:"The turnover costs could/will be high"and"How much more damage could they do?"

Most likely your insurance deductible will be more than that and an attorney will definitely cost you more than that.