A mortgage broker is one who is in the business of dealing in mortgages or notes, it is their primary source of income, they advertise and seek out note purchases and sales, there is a thin line between being a broker or in the mortgage business and being a personal investor. 

If the property appraises for $500,000, you would only be able to cash out $375,000.Would this still be true as a primary residence or would we be able to find something like 5-10% down on a 30 yr loan?

Our primary asset is a house we bought in 2021 for $975 (3% interest rate).

Real estate, by default, is passive and the primary way to avoid the passive loss rules is to qualify as a real estate professional.Full-time employees and non-real estate business owners cannot qualify as a real estate professional (aka REPS status) because one of the tests is to spend more time in real estate than anything else (and it’s unlikely that you can convince the IRS or Tax Court that you spent more time in RE than your day job).

But as a property grows in size your rent/sq ft generally decreases.And right now the profit from that primary residence is tax free!!!  

The primary reason is that my parents' risk tolerance is much lower than my own (they are retired and are on fixed income).

Quote from @Renee Ward: In a quote for an umbrella policy, when I see it in writing it is labeled a personal umbrella policy with our primary home cars etc. 

The last coupe of weeks 3 people told me their premium went down for their primary.

Additionally, Irrevocable Trusts usually require that a 3rd party be the Trustee, which means that you will not have a primary role in decision-making as it relates to the Irrevocable Trust.

If you don't want to miss out maybe just buy it as your primary and live in it until you can actually at least break even.