I'm glad you have an umbrella policy for the first 10, but when you own them in your own name, a loss in one property can spill over to the others, and personally.

Wait .. all...This entire question is wrong.See, be careful when you say Every 1000, gets you a deal.Most of you are implying "Law Of Avereges".Law of averages state that something has a higher probability of happening because of the expectation it has to happen because it didn't happen yet.Consider this.

Are you out of state?

I would learn a little bit more about contract law in your state.

This shows that they knowingly signed the document stating you are licensed and acting as the principal for example.   

However, there’s a due-on-sale clause risk, so proceed carefully.A lease option (rent-to-own) could also work if you need time to qualify for a mortgage later.

New to buying properties there. 1) We need a place to live for 1st year, so we buy a duplex in cash using an LLC to own it.

There is nothing in the guidelines that states that you are NOT able to rent out the property as a transient stay throughout the year. 

The question now is: Will more states follow Colorado’s lead, or will outdated zoning laws continue to stand in the way?

You may to buy them but getting a state/city specific lease that is reviewed by a lawyer is worth the cost.