Quote from @James Kerson: One other idea: scrap the idea of door-openers altogether.

Btw, my understanding is that LLCs with only spouses as members don’t give you protection, so maybe you just avoid LLCs altogether, hold title under trusts for anonymity and just bulk up your personal umbrella.

Seems though this is a concern throughout Mexico...so is Mexico just a bad idea altogether for vacationing/investing?

That's the only thing that would change for me if I found out this information about a rental unless you want to change strategies altogether and flip it. 

Is there any concern that the local government would ever ban short term rentals altogether?

There was already the tentative possibility of moving out of it altogether which sounds like would be beneficial in order for it to qualify as >50% business use.  

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

To equal 50,000 a year plus you would need 9 of these house for 450,000 cash investment.As someone who owns nearly that many houses altogether in C-D neighborhoods here is how you do it without 450K investment using my own version of BRRR. 1st house purchased with my mother in 2011.

Have them check the entire home, not just the areas you are aware of, and mitigate the issue altogether. 

I could maybe sign up with that theory if the GPs were using the side hustle money as a way of cutting or eliminating their fees & salaries altogether while they try to hang in long enough to hope for enough rate cuts to refinance or the market to unfreeze and let them unload at least at break-even, but I bet none of them do anything of the kind.