Tom,I completely understand the strategy you are looking to execute and accomplish when it comes to offsetting your W2 income with STR paper losses via cost segs and bonus depreciation.

Buying a house, renting out the additional bedrooms at about $1000 a month on average.

In addition there are areas in Los Angeles that have stricter rent control than the state wide rent control.  

This could manifest itself in additional damages and financial losses when they decide they don't want to put up with you any more.Also, Section 8 does require more work setting up, renewing, increasing rent, etc.

You can still have an operating agreement that everyone agrees to and it will accomplish the same thing.One thing I forgot to mention is what I did with a business partner is we have 50/50 ownership, but one person has 51% decision power.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Are there additional primary residence requirements such as homeowners exemption required, or anyone know if this is coming down the line?

Additionally, they test to determine what sort of mold/s are present, so as to determine toxicity.  

I did not have much luck with traditional banks even though my partner is a GC and has done multiple additions and garages.

I understand the cost of having to separate meters and purchasing additional water heaters and such will be hefty.