However, given our current state I'm preparing to set-up my own website and/or post on various channels that don't appear to offer the host insurance and I know asking the Guest for security deposit or to run background checks can be a deterrent for short stays.

Envision 10 years  out and your cheap OOS is still performing well meaning it is still producing inflation adjusted cash flow equivalent of a few hundred dollars and has appreciated near the inflation rate (this would be a good performing unit) and compare that to what you would expect a San Diego property to have produced.  

They are so low that it appears you had no turnover and little to no R&M. 

Nationally most blended commercial and residential PM operations appear to be trading at a 3 to 4 times multiple of EBITDA. 

From my research it appears that I cannot use the Qualified Joint Venture to form a single member LLC for husband+wife, because I live in NC which is not a community property state.1.

I recall a case where a court held that the act of having engineering plans drawn up was the first act of visible construction.A quick review of DC's lien provisions appears to show that a sub's lien rights relate back to the date of first work and the sub has up to 90 days after completion of the project to file so someone who close on a purchase of the improvement 60 days after completion may wake up to find a lien has been recorded the next day so it's not gap matter, it's a post-closing matter.

This is the equivalent of flipping houses for apartments.  

Third, I gave them a break on rent and they had an extra $1800.00 that magically appeared in their account.Interested for some feedback, advice, or just a hug?!?

Since it doesn't appear I'm going to avoid the franchise tax in CA, would it be preferential to create the LLC in CA and register it as a foreign entity in OH, so that I can meet both of these benefits you reference, or is the reverse preferred (form in OH and register as foreign entity in CA)?

Pulling what appears to be 2% or less of your equity to do the fix seems reasonable.