Starting smaller is fine, but the unit has to be spa like or you will likely fall victim to pricing wars or get lost in the booking sites algorithms. 

Since you can't escape CA LLC registration, if the property is based here, and if you are a resident here, may make sense just to form a CA LLC and simplify your life and your costs.Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Deal DetailsI have some sellers who are falling behind, but they have a good mortgage at 3.25% interest rate.

While the notice may fall on deaf ears at the syndicator, the law firm would very likely read and notify syndicator of notice of default.  

Depending on your address you may fall into the city's jurisdiction which only allows short term rentals for 90days or less in a calendar year, or the unincorporated part of the county which does not have the restriction.

I have friends who can't even drink grape juice or they risk falling off the wagon, and they avoid places serving alcohol as much as possible.

I think the issue here is being able to understand where this price point falls in the market itself. 

I often wonder why folks fall for the hey pay me 10k up front to join my club I will fund your deals when in fact they just refer to a HML to fund them and we will split profit 50 /50.. my profit splits are no where near that  80/20  70/30  bigger side going to the capital partner I want them to grow and continue I dont want them wishing they never should have spent 10k or more on some program..

Or we'll have had a correction, and prices will fall, but probably from something higher than where they are today and will stabilize somewhere around today's prices.  

My guess is you are a victim of analysis paralysis.