@Eilon ShohamSTR and MTR can be profitable with the right business plan. 

I'd agree....but his guests will fell creeped out and hurt his business.

I assume, I will have to open business accounts and use those to manage my business expenses and business earnings etc. 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

If a STR has a typical homeowner's policy and just Aircover, and the property burns or a tree falls on the home, it will not be covered at all because it was operating as a business under a homeowner's policy.  

I want to automated this process for my business. 

I would bet that most title companies who get into the 1031 business don't know how to advise on or conduct much more than the simplest of exchanges. 

This is a business, like any other business.

Hi there, I am a new real estate investor, living in Los Angeles, with access to the capital needed to build a real estate business.

He owns his own business and writes off a significant amount.