It's nothing you can control.

Los Angeles has one of the strictest rent control laws and ordinances in the country.

Does anyone have a Colorado law reference that details the landlord's financial liabilities if a rental property becomes uninhabitable due to something outside of the normal Landlord or tenant's control (i.e. natural or human caused  disaster, system failure like sewer or city water breaks etc.?).

It has been a really good business but we maintain control while renters are on the boats and can shut down anything that add too much excessive liability. 

Condo associations here are notorious for outrageous pricing and control.

This will make it much easier to attain loans through an LLC or even personally once you have control over the units.

And to tag onto what Tom said...a property in DC owned by an LLC is automatically subject to rent control.

People buying STR are generally geared towards upper middle class who likely have careers where they are in some form of management and giving up control to someone else just isn’t in the blood, but objectively speaking, without emotion involved you really need to run your numbers. 

If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing.

The exclusive option to buy gives the optionee a lot of control depending on the cost or consideration paid.