Less competition is quite a benefit.

If you can get up to 20% down - Fannie Mae, Freddie Mac, and the local banks will be able to be competitive on rate and interest only.

Your competition is likely sleeping or scared right now.

They are in horrible condition so less competition.  

If used correctly, it will keep all of the small crappy reservations from being able to book you spot, (they will book your competition instead).

Also, you're in Los Angeles, indeed a hyper-competitive market and way overpriced, not to mention a state govt with a choke hold of regulations on everything an entrepreneur wants to do. 

Also take a good look at your competition's photos and virtual tours and see what they're doing well or not-so-well.

No competition and discounted properties.  

In my market with Class B there's a ton of competition for those properties among casual investors who are willing to pay more because all they want is 2-5 properties vs. an empire and they're willing to pay for it and stop growing. 

There are also many people doing the same thing, so you would need to find a niche or multiple niches where you have a competitive advantage.