An outsized percentage of them are guys who never quite made it in the trades and decided to get their home inspector's license to supplement a not-so-steady income from other sources.

Trade war stories?

With plans calling for a 3/3 unit and 2-2/2 units and similar triplexes trading north of 750k this is a home run investment to keep in his portfolio.

Did you submit your drawings, find licensed contractors for all trades to do the paperwork? 

The result is that Oregon law prevents individual or small groups of contractors from using undercapitalized LLCs–and the high standard for piercing the veil–to immunize themselves from the disastrous consequences of their negligent, unlawful conduct.Though Cortez worked for the employer where he was injured, and was injured on the job, the employer tried to use the defense of his LLC protecting him from liability.

Consequently, new homes in these locations start at $550,000.

Could you elaborate on the consequence if the buyer defaults on the loan payment?

If you have more of an appetite for leverage, then I think you trade up into better quality, higher appreciation assets; however, life does not exist on a spreadsheet.

It is the hired trades that are required to be licensed. 

You're just trading one set of problems for another.Highly recommend inspecting current home of any S8 applicant (we do this for any applicant under 620 credit score).