Best case, they get bailed out by market appreciation before the property bleeds them dry.

Pretty cut and dry process.

Hey Paul, congrats on pulling the trigger on your first property.I'm also in CA (on the central coast) and invest out-of-state (Detroit).

If you have a mortgage on the property and transfer it to an LLC (the LLC would be a different owner) it could trigger a due-on-sale clause.

I signed up for a mastermind class that teaches you how to invest in STRs and pulled the trigger on a 2BD/1BA house in Pittsburgh, PA to operate as an STR.

So please please please consult one before pulling the trigger.

Their standard contract absolves them of their actions and hangs you out to dry so they can continue providing poor service to tenants and owners.

Very helpful and all responses have triggered additional questions for my tax guy.

@Jordan Dzubak we played with the idea of getting something at the Lake a few years ago, but ultimately never pulled the trigger in large part because so many neighborhoods were modifying their C&Rs to prohibit short-term. 

I really appreciate any input or suggestions before I pull the trigger on these large expenses.