I have bought 2 four plexes and looking to find the best structure with LlC , Lease and sub lease.

A great example is people calling around to find the cheapest title company (@Tom Gimer has discussed this) If you are doing a $100-400K transaction why would you try to save a few hundred dollars for good title work or legal advice.                                        

My question is, why isn't there a legal challenge against this law?

It's a hit or miss with some lenders but the best capital sources I work with has an amazing rep and provides us with guidelines/resources to get deals closed.

In Pennsylvania, we are tax deed, so a deed is issued, but it is typically delayed (legal process takes time).

Within fourteen days, excluding Saturdays, Sundays or other legal holidays, after termination of the tenancy and delivery of possession and demand by the tenant the landlord shall provide the tenant an itemized list of all deductions together with the amount due and payable to the tenant, if any.

By listing and renting on the OTA’s like AirBnb and VRBO you never lose the ability to occupy the property because they are not facilitation a legal lease agreement.  

2) Legal - I know licensed agents have a fiduciary responsibility (which is why I want to be transparent with the options and provide accurate numbers) but I want to make sure I don't expose myself to any legal issues down the road.

>>I am NOT an attorney and am NOT giving legal advice >>Consult your own legal counsel for specific adviceI have to say that

MikeI would be surprised to find a lake house on a legal septic system, most likely the house has a holding tank that needs to be pumped every few weeks depending on usage.