It's saturated now and management fees are high for STR, up to 25 percent.

Could you self manage?

If you consider out-of-state investing, I recommend reading “Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties” - I found it to be very helpful when I got started investing 2.5 years ago.

I manage & do all of the setups because I'm local. 

In my market, buyers are looking for about 12% or more in gross rental income relative to purchase price, so if you have a $500K property that's only doing $40K/yr under the current management, don't post rental history (though most buyers will ask for it, so be prepared to explain why it's performing the way it is).Also, network with agents who specialize in STRs. 

We've had very good luck with foremost insurance for our owners that we manage for.

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.

So, early on, right after college he decided to forgo the usual “management trainee” route and go right to where he could make a lot of money fast - commissioned sales.

I love it because it's made by real estate investors FOR real estate investors so you get everything you need to manage your property finances and nothing you don't need.

@Julian Broyles  I can't speak to phoenix area Property managers but if you need to have a PM manage your rental it is hard to get someone to manage rent by the room properties.