Unfortunately for him he recognized he didn’t have enough data points to come to a conclusion on whether debt monetization has occurred. 

If there is an accident or incident at a property and you are sued, your other properties and personal assets are exposed. 

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you are covered.

Eventually misunderstandings and hard feeling will occur and you don't want to lose family over money

The issues with it are many; 1) you NEED to make absolutely sure the carrier will insure it especially if you are planning on updating the wiring that is when most fires occur and if you are not insured that’s no bueno; 2) most insurance brokers themselves don’t know or worse issue you an insurance policy - the result is that you technically do have ‘insurance’ in that you do pay the premium but are certainly not covered if something happens because of it; 3) if the electrical has been ‘updated’ check with your township to see what electrical permits were pulled if they have no record then chances are that the electrical may look updated but there is knob and tube behind the walls.

After this occurs, you could do a cash out refinance and get some money out of the property, and then you can restart this process all over again, whether it be through a lender, a private investor, or your own funds!

Quote from @Mike Dymski: All of these strategies are alive and well, rates are still low relative to historic levels, TBD on what rising rates will do...may reduce inventory even more as people move less, and I don't know where you are seeing retail buyers out of the game...the market is still red hot most everywhere.All the changes that were proposed here as problems that would somehow change things have occurred many times before the next time,...and the next, ...and...When those changes happened before, how did it impact the REI market? 

Can avoid a lot of trouble from doing something wrong by accident.

Not sure about the lenders south of the 49th, but I would presume a similar expansion of the conditions triggering a due on sale clause has occurred.

On the positive side, all of the interior walls are concrete block which limits peripheral damage when shooting occur inside the buildings or tenants set their units on fire.