My guess is that to benefit from a Wyoming LLC you would need some pretty good (IE expensive) legal advice to advise you how to set up and maintain. 

But while these issues can be impossible to avoid... they can still be mitigated through a good property manager that does proper screening correct?

Purchase price: $1,000,000 Cash invested: $150,000 purchased this distressed off market 5 unit near city park; worked with city to split the property into 5 new legal townhomes and plan to sell individually; plan b is to sell some of the units and keep other units as rentals.

Curious what most investors are doing in today’s market. we always start with the legal process as that is the fastest way to get the borrower to the table to allow you to rework or modify the loan.

I would probably leave a State that is landlord-unfriendly faster than one with State income tax, as the potential pain inflicted by the legal system would trouble me more than reasonable taxes.

Noise complaints, safety complaints, nuisences, etc- those are legal matters, not landlord matters.As for your specific situation- they're just reaching out to you because they think you have money and the tenants probably don't, but the tenants are the ones creating the theoretical nuisance. 

“Broker” is a legal term that often requires standardized coursework and a state license. 

A purchase agreement is a legal instrument. 

Non-owner-occupied STRs are prohibited in residential zones (R, RS, and RM) and only permitted in multi-family, mixed-use, or commercial areas, which means you cannot legally operate an investor-owned STR in most desirable residential neighborhoods where the highest revenue potential exists.

You should also tally the costs, as those can be deducted from the security deposit and potentially used as the basis for further legal action.Regarding reimbursement, yes, you can pursue the tenants in small claims court for damages exceeding the $1,200 deposit.