Edna~ I know you are looking to invest in cities closest to the Canadian border, however, I would encourage you to cast a wider net as you can find some excellent cash-flowing properties throughout the SE USA. 

I'm not aware of any law in general that makes it per se illegal in California to use RUBS. 

You can also use a bank statement loan or SE program to use gross deposits versus taxes that have deductions.

I said that the same protection can be had for less money than having mortgages by putting the paid off properties into trust.most states have upheld the “Illinois land trust” — has nothing to do with Illinois per se. it’s a description of how little a trust can do without being declared passive and therefore executed.  

I'm not looking for instagrammable moments, per se, but the visual appeal is incredibly important.

So the three types of zones aren't "official" per se, so I would advise speaking with people who would know i.e. realtors, investors, property managers, others hosts, etc. and simply asking them what the medium to long term outlook is on STR regulation in that zone is.

Any investors in Michigan and specifically the Washtenaw, Livingston, and Monroe counties? We are newer to the real estate world and looking to connect with local investors, and for off market deals from wholesalers. ...

You haven't advocated for quantity-- I get that, but you've advocated for things that are usually not quality per se.

In my local market (SE Michigan) construction costs have gone up but home prices have fallen.

There are some that can seing 85% however be catious of additional qualifications/requirements and additional fees/payments.