That's smart business, right?

My business partner has two STRs adjacent to ours that has several 1-bed units that rent very well during the week. 

The business venture that went sideways?

From real estate investors to other small businesses, I talk to people daily who have no idea about the potential liability under the Telephone Consumer Protection Act ("TCPA")(47 U.S.C. 227 et seq.).There are two initial issues that can create huge problems with your suggestion.

Having trusted resources in market have been helpful in managing our properties and contractors especially when my non-real estate related consulting business is in its busy season.

Make sure you connect with the NHREIA, great group, they have monthly meetings in Manchester and a busy FB group with 3500+ members.

I have experience with this business model. 

There may be a way to reduce property tax reassessment by using LLCs, but it is a complicated plan, takes time to complete, generally needs a business purpose, and is not without risk. 

We're living in times when franchises go out of business overnight, but healthcare will never be since it is essential. 

The liability coverage is way better, the building coverage is often better, and commercial policies typically cover loss of business income as well, which a homeowners policy isn't going to help you with.California + wildfire area + STR is super tough.