You are probably being scammed but not much you can do. 

I don't want to be led down a scam road.  

And saddest part is it's exclusively and wholly due to regulatory/political actions (ie manufactured/self-inflicted stupidity)      For those not in the know, it's worth a read the far too long list of insane anti-landlord measures recently into effect.

A good GC would know that scam and save you at least $1k per job, it's just a matter of finding a good GC which is as difficult as finding a good realtor 

As for free markets, if company A has the best product and owns the majority of the market... as long as they are not anti-competitive and/or violate anti-trust laws... they are allowed to enjoy a dominant market share.

However, there is a large anti-STR sentiment in many areas in San Diego. 

Politicians who create and anti-landlord climate have to defend their actions. 

I believe that a lot of people think the letters might be a scam that's why they are bothered by the letters.

However, here at SCAM LLC, LLC, LLC, we strongly believe the real money is in monetizing these ideas, and that getting in on these concepts at the ground level is a sure-fire way for our investors to reach financial independence beyond their wildest dreams.

Huge scam.