If the property is wrecked it won't qualify for a conventional loan.

Also, guests break things, clog pipes and wreck a LOT of towels.

Fast forward a few months, and they have non-paying tenants who are wrecking the place, and a MIA property manager who (understandably) won't put in the ENORMOUS amount of effort required to manage a property in a C or D area for a small-time client from another state.

Bad guys will break in and wreck everything.

It is so hard to watch my good friend not only have to deal with significant health problems alone but see how they have gone from a dynamic, resilient, wicked smart person managing 5 properties AND holding down a 30-40 hour a week full-time job to sustaining an accident and having their life fall apart like a slow-motion train wreck. 2 of the properties in their portfolio had to be sold just to get $ to live off of. 

So for me, unless it's a horrific wreck beyond being saved, I'd without doubt go HW route.     

The seller may end up wrecking their credit and losing their home. 

You're right Foxconn in China does bulk of hardware manufacturing, that's what happened during the dot bomb/tech wreck.

Okay, let's play this out: Would you not sue a car wash that has wrecked your car just because it's an LLC?

If you don’t think you owe it, fight it, if you agree you owed it and they made a mistake definitely pay it, you’ll wreck your credit and then pay it anyway with penalties and fees.