Operating as short term rental by the bedroom, grossing $3500 - 5000/mo, between $500-1000 net.

Usually its a safer bet.

Yes the Class feature Cost a bit extra which is a bummer bet the support for it is amazing, and it is easy to allow access for Tax Accountants to pull the reports they need rather than my clients playing middleman. 

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

Your best/safest bet would be a regular lease combined with an option to purchase.

I'd bet that this note is worth more to you than to most buyers until the note is much lower LTV, but I'm a novice in this space.

I've been doing this 20 years, so know how to operate these.

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.  

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

If you can come in and operate effectively I think you'll find success rather quickly due to that.BTW - for a property management platform I would highly recommend Buildium.