Additionally, I’ve been wondering if it might be possible to create an LLC, rent my house to the LLC through a formal contract, and then have the LLC operate the Airbnb.

It seems great on paper because you were technically creating more income but you are also creating more of a headache...Cramming in bedrooms and forcing living space is not always the best way of going about things.

There are some other dynamics that also will likely play a factor in making the situation great for investors...such as runup in home prices and interest rates probably created a permanent renter class of society. 

Man was not created to lounge all day.

*This post does not create a CPA-client relationship.

It creates a problem when selling the property as no one who wanted to live in the house would buy it, and your buyer pool for this property would be majority investors.

So when that TARP 2.0 comes, it will be directed to the big banking entity/ J.P. to "save the commercial financing world", to "create liquidity" which is a giant smoke and mirror trick because that TARP 2.0 is just added profits, the asset's are coming back liquid already, it's the LP's and regional bank and the regional bank investors who get burned, bad. 

What I wrote above does not create an attorney/client relationship between us.

This creates a negative initial position.

Every married couple in California has a prenuptial agreement, even if they didn't create one!