The quality and quantity of your leads will be determined by how broad or defined your criteria are.

It really helped me define my investing goals and criteria.Listen to the podcasts, get active on the forums, join your local REIA.  

I think that you need to define what type of investing you are talking about.

California Corporations Code sections 191, 15901.02(ai) and 17708.03 define "transacting intrastate "as entering into repeated and successive transactions of its business in this state, other than interstate or foreign commerce."

Short of knowing the area first hand, you have to find out how the provider/seller is defining their classifications.  

The promissory note defines the terms of the agreement, what, when, where to pay.We keep it simple.

I think you can pretty much determine the rental class by the demographics and this is much more defined than your map (although your map looks pretty good as a general guide).

For me personally (and my company) I've always defined it as follows:  The property is in a stable or growth market.The property is in a desirable neighborhood.The property is new or has been newly renovated.The property is cash-flow positive even if fully leveraged.The property is leased, or in the process of being leased.The property is under professional property management.The property has been carefully selected with renters in mind.Please post any questions in you need more clarification.Continued success!

This can be broken down and defined under several criteria.2) Property management is the key -- whether you find them on your own, or have one referred to you -- I always tell our investors that you, "Live and die by your manager".There is no "extra risk" if you know what you're doing and use a proven system. 

It's not just real estate, the one year threshold has been well defined, to holding assets, it is generally accepted accounting practice which the IRS adheres to.