More on how that is calculated below.

In Oceanside, New non-hosted STRs are prohibited outside of the Coastal Zone as of February 10, 2024.Most HOA's do not allow rentals less than 30 days so that is likely not an option unless you find a couple of places on the water that allow it but usually tough to find below $1M. 

I have put the rental price below the market (as suggested by local real estate agents).

What they are not seeing that a "great deal" 20k below list may still be 30k overpriced.

If they are not aligned then simply keep looking till you find one that is.I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.My business partner is a regional VP for NARPM and I am happy to help if you need anything please reach outQuestions to Ask prospective management companiesWhat are your average days on market for vacant homes?

Even flips are getting razor thin margins (see reference below). 

I Offered it to them at 10% below market with him paying utilities. he wanted it, so I screened him to verify he can afford it.

Regardless, you might find the copy & paste info below helpful:)--------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Quote from @Nick Am: @Brett SynickyAnswers and thoughts below in Bold--> I am trying to setup a management company (LLC-B) and charge LLC-A management fees.

With that much "profit" available in the deal, if needed we could sell even in todays market, at below market and still profit.