I don't know how that business could survive long-term with such low rates.If those numbers are accurate and you can net $38,000 a year, then it's worth holding onto.

From what Ive read, it looks like I may have to get a business certificate to do this in SF but Im not sure what that entails or what else is involved?

This is a very valid business model and costs are low.  

I am looking to network and build a strong business relationship with a local real estate agent.

You will need to find partners, you will need to travel to where you wish to invest, you will need to understand the ins and outs of the business by being actively involved and treating it like a business and not some super passive investment.If you don't want to do that work I suggest you just put that 200k into some sort of diversified mutual fund that can make you 10+% on your money without any of the work of real estate.At the end of the day this is just my advice and I'm only a stranger on the internet.

We live in California at the moment and I have W2 job and my wife a small online business.

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

I was raised in the land business and sold land exclusively for many years.

Renting, like hiring an employee, taking on a business partner or client and marring (even more so), are relationships that can be costly if made hastily or imprudently.Like others, I have check lists that I do not deviate from. 

I'd like to keep savings and be able to hire out some of the work (something we have not done in the past).My thoughts are to put both into an LLC and look for investors or a business loan, and purchase and move to a new home.