Those guys are worth their weight in gold.

If "owner financing" is your version of "Starbucks" in my example and making you tilt your neighborhood assessment, rehab assessment, give that overaggressive Zestimate a little too much weight, etc. you'd better find a way to level things out.  

I have been reading about the over building in Condos in that market and am monitoring it for a crash so I can buy low.  

If I were you, I'd really set 2-3 sit downs with investors in LA who've done this exact type of project, weight the pros and cons and then make a calculated decision on how to proceed. 

Is it because so much extra liability (weight rooms, pools, etc) as well as the additional cost (much more landscaping, pool cleaning, general area upkeep)?

The purpose is to keep my files up to date and to monitor tenants on my property.

Inspections are worth their weight in gold.

I don't put as much weight on the Cap Rate.

Some of the facebook groups I monitor for STR information seem to indicate that the hotel lobby is pushing for stringent regulations to be implemented. 

That is, by definition, losing money.The terms she has proposed are heavily weighted in her favor, and better than she would get from an experienced lender.