The government up there also makes it hard on landlords. 

As long as the government gets out of the way and let the free markets work, we will be ok.

All:There is supposed to be additional guidance coming out this fall from the Federal Government and MN DEED has a section on their WEB site dedicated to this topic as well. 

I’ve only been investing on the side for a little over 2 years, my day job is actually writing and reviewing government contracts.

Sometimes it is difficult to get government agencies to call you back

The government can put a lien on your assets, and banks don't like to see that. 

Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC? 

When Greek were posed to default on their loans in 2008, these banks didn't take the hit they should have, a hit they deserved for making bad loans.Instead, the large national banks ran to their governments and demanded that the EU "bail out" Greece.

When you sell the house, the government is going to make you pay back that benefit in the form of "depreciation recapture".

Taxes and Other Government Fees. $48E.