You really need 50k to start and then make sure you get into the right market where your exposure on any one deal all in is 25k.I advise people all the time on how to get started. 

For illustration purposes if a tenant or passerby trips and becomes  hurt because of a premises liability event, if you discriminate against a tenant or buyer, fail to pay your contractor for work that was performed or any of the many fact patterns that could lead to claim exposure presents itself do you really believe your identity is going to stop a plaintiffs attorney from filing a claim, lien etc?

These were long time holds as long as 35 years.Pretty soon you will arrive at the required numbers including your tax exposure for Ca state income tax, make sure you are sitting down for that part.It is all covered by the video above and your accountant.

I'm not sure it's so straightforward to put a room in your primary residence into an LLC but at the same time worried about the risk exposure if I don't - any thoughts on the pros and cons of either would be appreciated!

That might limit your exposure to having interest eat up your profit and might increase your success chances by bringing on complimentary wisdom while you hone your craft.

If you're comfortable with a smaller percentage for expenses, change this part of the calculation - just realize you're ratcheting up your risk exposure on the property.Divide the net operating income by the prevailing interest rate (5%?

In my opinion you need the most exposure possible.

IB has the water/sewer issue but it keeps getting more press/exposure.  

I'm just starting out with my first STR so I'm really relying on good reviews and guest experiences to get more exposure on the listing platforms!

I have exposure to Honeywell and Nest