He’s interested in stocks, bonds and the financial markets.

FYI this is a lengthy, bureaucratic process, but since Im not seeing a lot of info about the reality of it-I am sharing what I’ve learned.  

It is analogous to owning a 30 yr treasury bond at well above current rates.

Usually a call to that agency will light a fire under any Contractor.b) A licensed Contractor will also have a Bond.

A fool would see exactly where that was heading.They managed to spend some of the "free money" but the account was quickly frozen and judgment entered for constructive trust in the full amount plus the cost of the bond, interest and attorneys fees.

Alternatively, if you're wanting to do something more aggressive, you could consider a balanced fund, such as Vanguard's LifeStrategy Income Fund (VASIX), which is 20% Stocks / 80% Bonds.

I like B+ and above because of a lengthy eviction process and costly turnover’s.

Also, lenders usually require a licensed contractor, bond and insurance. 

I’m not saying he isn’t right with the loophole (I agree and interpret it that way as well), it’s just so new that possible audit flag and a lengthy court case?

The second issue I have with STNL is that if it functions like a bond, then isn’t this a terrible time to buy?