It is legal and very lucrative in some parts of the US. 

In fact, Chase and several other banks have been slapped with fines for their misconduct relating directly to those issues.

Issues keep coming up and the students asked MF Capital to help with the $50k extra the lender is requiring.

With that said I have some on beachfront properties for over 3 yrs with no issues, but I had issues on some on my mountain properties. 

I do have additional coverage for the sewer since I knew it may have issues before I bought the property. 

CA is brutal when it comes to taxes.I don't give tax or legal advice, but many people believe that holding the property in your name and having a good umbrella policy is a good solution.

:)I am sure this is a solvable issue with some work.

That is why it is hard to get regular real estate loans on assets valued so low, the cost of the refinance makes it so you are paying higher than they can legally charge you percentage wise.

They are worth the money for a good hot tub that is mentioned all the time in reviews and doesn't have a ton of issues.

The positive is you can get them out with 60 day notice so 60 day escrow would allow the unit to be delivered vacant (assuming zero issues terminating the rental)good luck