STRs generally produce more income than LTRs, but they are more work.

Because, the lender is entitled to know what risk they are taking with their money.That being said, on seller financing, if someone gets sued and loses, the lien/judgement can be filed at the county, (it's not automatic, someone has to prepare and send the paperwork) which the bureaus will pick it up on producing a credit report.

Though it may cash flow well based on their current debt service, when you compare the income it produces to the equity they have is it actually even a good investment for them from an ROI perspective or would they be better off liquidating and redeploying?

I don’t think so, but I’m interested in seeing the evidence if you can produce any. 

Affordable deals do not typically produce cash flow.  

Top producers are always very pleasant to work with (which does not mean they are soft)3.)

Our manager has tried outsourcing filling the unit to a realtor agent with agent incentives but that has not produced any results in the last month.

Most states require them to produce a report with that data to give to the client.So why is having an algorithm look at the rental data illegal, but an individual person look at the data not?

Quote from @Greg Scott: LOL  Very creative.It could produce a windfall, or perhaps, massive IRS penalties.  

It would be a way of leaving an inheritance that's all wrapped up in an income producing bow.