I have over 40% equity based on loan amount of $200K and general market value of the property at $400K (unsure what assessed value would be).I'm thinking I'm a candidate for PMI removal.

The tax treatment of your land sales would typically be determined based on when each parcel was sold and whether they were held for investment or business purposes.

The truth is, it’s based on a multitude of factors and ultimately comes down to what makes sense to you.

And again, this is my market and area of town, but tenants like the character of the older home with the tall base boards, hardwood floors, arched doorways between rooms, etc.  

Do you have every potential renter complete this or only select one renter based off the pre-screening process?

@Josh Mac are they wifi or cell phone based? 

You should look to have a base of cash flow before you are financially stable enough to be in low/negative cash flow markets like California.

Even if you are actively operating as an STR the lender will look to tax returns for income, so if it has been less than a year they will still go on LTR income.You need to factor in that your lender is going to underwrite any loan based on LTR income only. 

In the meantime, offer based on what the tenants are paying now.

I highly recommend letting the attorney prepare the operating agrement based on questions they present you rather than have them mark up your version.