My suggestion would be to cap your utilities at a certain amount and have Tenants pay anything over that amount.That will help you manage your expenses, and also allow Tenants to gage their usage each month, and make adjustments if they don't want to go over the allotted amount.As far as collection, provide the bill showing any overages and just have them pay for it along with their rent. 

What we are working on is making sure that the business is organized and prepared.

I recommend having a contractor walk through the property before submitting your offer, or you could make your offer contingent on a contractor walkthrough.

I spoke to them about 1.5 months ago and since then they have been non-responsive that makes them look like not the real deal and I'm wondering if they are still around and active and good?

We would be fine extending a month+ to make it 90 days notice.  

You can't pull money out if there is no equity.

If they’re underfunded, you could get hit with special assessments.Since you want to stay local and focus on cash flow, commercial makes sense, but have you considered industrial or flex space?

Make sure they feel heard and assure them you will do in your power what you can do to make sure they are safe.

The zoning changes will make California a hot real estate market.

Reviews can make or break your STR—obviously.