The median home price is also very low nationwide which creates a low barrier to entry.

it has its own challenges - old properties with significant deferred maintenance, low to no appreciation in certain areas, lower rents. 

They're so expensive, but I'm having trouble finding an insurance provider for short term rentals.

I’ve seen high-highs and low-lows.

Your set up expenses will be costly and may sway your decision making.List on both Airbnb and VRBO. 

Having rental income cover my living expenses.

As an aside I buy properties I can fix up upon the initial purchase or shortly thereafter so as to minimize future expenses.

Same goes for number of LLCs and what to fund them with, since bear in mind that CA tends to be more cumbersome and expensive to have LLCs than other states.California is generally more cumbersome than other states when it comes to taxes and filings.

According to the prelim study, 78% remains in 39-year MACRS and the balance amounts to a $200K increase in our depreciation expense this year (catch up from foregone depreciation since 2011), which is an estimated tax savings this year of $65K.

Not too low either, you don't want to go with someone who is just focused on price as this is a quality of a not-so-great accountant.