On top of all that, they could be deported or willingly return to their country and there's no way for you to pursue legal action against them if they leave damages or unpaid bills.

What kind of lawyer do I need to help me get started in a STR business? Anyone set up their LLC in California?

Basically, your question does not have a generic answer.Here's some reading to start:https://www.biggerpockets.com/forums/51-tax-legal-issues-con...https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

"Every Landlord's Legal Guide" by NOLO is a good book for this purpose.

From my employer, I have legal insurance through ARAG that covers 100% of attorney fees when buying a primary residence, filing fees are extra.

Actually, YES, not only MAY the act of simply showing a property factually create "procuring cause" and be inclusive of a protected list, BUT just the action of having sent an e-mail of the listing, client having opened and seen that listing, not ever setting foot on premises, YES, that alone CAN be "procuring cause" and LEGALLY include such property into a protected list. 

I am fully aware this is not a legal advice forum, but just looking to hear what other landlords have done in this situation. 

The company hesitated to proceed with any further legal action and asked me to give them some time.

I really think that regulation is ripe for a legal challenge.