I am particularly interested in purchasing my first investment property as a short-term rental (STR).After analyzing recent data from AirDNA, I have identified several promising areas: Douglas, Saugatuck, Fennville, and I am also exploring opportunities around Stevensville and New Buffalo.I understand that regulations around STRs vary widely, and I've taken the time to study city maps to identify areas where they are still permitted.

My question is should I hold the property and put a long-term tenant in the place?

The exception would be if this was already permitted for STR - short term rentals VRBO then it might be worth it based on location.If you just want to buy a home and have a unit to help cover the mortgage I would still insist on lower price point or NO HOA to help get the total mortgage down so that the other unit covers 50% of the overall payment.  

But in real , practical terms it's the bank who has claim to Deed of Trust and who truly owns that house.

Although from the title I'm wondering if you would gain more responses in the mid-term rental form. 

Does anyone know if I am able to start an LLC and run short term rentals?

You also need to talk about your terms.

This one IS zoned for short-term rental.

I'm looking at a long term appreciation, and in the interim serve as a second home / STR or even LTR.

The performas given over and assurances by sales and marketing team of Krystal, Paul, Ross is misleading as they talk about section 8 tenants and then high sale point is that tenants are long term sitting and have been making payments.