This property, in particular, is in an area many local investors will not own, visit or even entertain as an investment.  

I would be extra cautious entertaining these types of offers.

Some sellers will still entertain them.  

I mean look at it this way; remove the entertainment industry, say it collectively relocates to Nashville, what would happen? 

Things like your vacations, entertainment, toys, food, clothes, housekeeping, pets, guns etc.

I consider that a liability,  don't want it on my balance sheet and if I were out of funds I would sit on the sidelines before entertaining that deal.

You are currently sitting in Los Angeles's entertainment mecca and Mid Term rentals/30+ day rentals are a great alternative to the STR limitation.

I am entertaining this, as a passive option, just wondering what other people's experiences (and returns?)

@Katie Miller, I purely entertain referrals from other people who have had great experiences with niche CPAs. 

I've offered to rent W/Ds to tenants in the nicer neighborhoods as I can buy a used set for $40 and rent them for the same price per month, but the tenants typically have their own.I'm also entertaining the idea of getting a whole house service contract for all appliances including the AC, plus plumbing.