I personally want to learn from those with experience.

Just to present an alternative point of view regarding California residents investing in STRs, I'd say the gambit still works and works well.For one thing, you still get to use the Section 263(a) tangible property regulations' de minimis rules, which probably mean you can immediately expense most of the furniture and fixtures in your STR.For another thing, while for your California return you won't be able to use bonus or accelerated depreciation for the personal property, you will still use shorter 5-year and 7-year lives for maybe 25% of the improvements.But the big thing: The federal tax bill is far, far bigger.

I’ve personally received a plethora of value from the BP podcasts as well as the connections I’ve made through BP.

Then I have still have to pay the person who was acting as a host even though no one came. 

Whether or not you subtract reserves for maintenance, vacancy, management, etc. from the annual rent or use the gross amount is a personal decision and I've seen people do it both ways.

In general, I personally stick with the larger metros that are experiencing population, labor force and economic growth.

Or can you still run everything through your personal return (just want to make sure that I can deduct things such as HOA fees which I can do if it is a rental).2) If I do decide to run everything thru my personal tax return (save on LLC fees), should I at the least set up a separate bank account to track costs separately?

An ignorant person lacks knowledge or awareness.

This will increase the return above what can be obtained on a passive investment.The flipside of having the power to control everything is that it can be alot of work (and a full-time job if a person is putting in sweat equity).

Hard to say one way or another without knowing your personal finances, goals etc., but it seems like a good deal.