Therefore one of the most undervalued skills is the ability to continue to earn income independent of the real estate performance as you scale until the real estate alone becomes sustainable.

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. 

Syndicated deals can be opaque, with high fees and limited control for passive investors.

They are a great tool becuase some lenders use AirDNA to qualifiy rental income if the property is not actively an AirBNB.

I told the couple that I got an offer for $1,700 but wanted to ultimately rent to them but need the income.

Even with that, I can't promise you won't have major issues and possibly lose the property or your monthly income. 

If the market is strong, holding could lead to future gains, especially with depreciation deductions offsetting rental income.

Your ability to qualify depends on income, credit, and lender requirements, but leveraging your equity makes your request more feasible.

I think the OP is talking about property tax not income tax ??

Take the proceeds and invest in a highly trusted Syndication or fund and enjoy the passive income.