As long as they pull the proper permits and are licensed contractors (if required in your state), they can legally work on the property.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

I love how Airbnb just pay me based on the evidence without going through 6 months legal battle or 3 years of collection hunting. 

Lender A is $500 cheaper in lender fees because they dont pay for some program or staff who, among other things, doublechecks info inputs and documents for accuracy.

I don't want them coming after me legally if I sell.

And you can't legally dictate how much they carry for personal belongings. 

Has anyone had any luck obtaining legal counsel and fighting this?  

If you care to learn about the distinctions, read these posts:https://www.biggerpockets.com/forums/517/topics/1215989-expl...https://www.biggerpockets.com/forums/51-tax-legal-issues-con...2.

This is an area where members can share spreadsheets, forms, documents, pictures, and more.

I’ve reported this to the FTC and have legal counsel.