Quote from @Jesse Valdez: When operating a business, it pays to know the laws.In most states, guests staying fewer than 30 days can be removed by police for failure to pay rent or obey the rules.

I have managed STRs for 10 years in Los Angeles, so I understand the business and operations.

But my question is that if we consider other operating costs like maintenance, capital expenditure, vacancy, etc then this property won't cash flow, so is this a good deal?

We’re looking to install a property management firm within the organization as a way to generate steady income and keep operations running.

If you’re ever looking to invest in Florida, @Josh Green has a successful STR operations going on in the Tampa Bay Area that is providing his clients with solid returns year round.

@Jay Hinrichs exactly the risk is even more than traditional development and the profit is actually less with more operational headaches.

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

If your property management company is good and has built an internal maintenance team which has set rates and had strong relationship relationships with licensed contractor which should keep costs in control, you should never need to shop contractors on your own I wouldn't think.So in short, our policy is give us your preferred contractors upfront if you have them, but then we work all tickets to resolution including dispatch, and payment of invoices.This is of course for operational expenses.  

It sounds like you may be a better fit for a smaller operation that still offers guided tours.

Evaluate forming an LLC to protect both parties and outline everything in an operating agreement.