@Martti Eckert here's the big issue that no one really talks about that you hopefully find helpful (this is copy & pasted):-----------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Unlike the 750-hour rule, this applies to determining whether you materially participate in a particular property or activity to make it a non-passive income source.

If so, would a different (smaller) ratio apply to how many units a certain population should have?

If the trust holds the insurance, it shouldn't matter.That's correct but changing the beneficiary to someone or something other than the borrower does trigger the due on sale... no exemption applies. 

Quote from @Jay Hinrichs: Quote from @Don Konipol: We have a saying in Texas that seems to apply to the subject of this thread“Big hat, No cattle”. 

-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

These are NonQM loans that underwrite by using the gross cashflow (as evidenced by net deposits in your bank account or how much was reported on your 1099) and then applying an expense ratio (usually 30-70%) to determine your gross income.

Here’s what CCC looks like when applied to large multifamily properties:Key Elements of CCC1.

@Anthony Sigala that "Rule" was created for mostly Class B properties BEFORE the Great RE Crash of 2008-2010.Values after the Crash dropped so much, that it could also be used for Class A rentals.Values are now more than their pre-crash highs, so the rule now only applies to Class B & C rentals.How are you identifying Class B & C submarkets in your area, so you can properly apply the rule to the right rentals?

There are a lot of good things about Wyoming LLCs, but the favorable Wyoming laws don't matter as much because the state you are in will apply the laws of the state the property is located in.