To me it just seemed like codes and loopholes, but I'm no expert. 

I still think HOA or County law might trump this loop hole..

Problem is I'm being told that Umbrella policies have loop-holes and even LLC protection can be broken. 

It all depends on how your contract is written, if you’ve allowed any loop holes or didn’t outline in writing BEFORE they signed the lease then you need proper guidance on how to protect your assets to get out of the contract.I will say that if they started off lying then it comes way to easy for them.

I feel the same, but am always concerned that there is some loop hole I'm missing.

Since my auto loan was originated by the dealership, I was in a loophole system that I did not have to be a member of the credit union to have the loan.

The actions you described in "Getting around the rules" and "finding loopholes" could be prosecutable at most and are  unethical at least.

Sellers hate contingencies because they know it’s a loophole for you to back out .

If you have a sizable amount in your IRA it is possible to access those funds prior to retirement using little known loophole. 

@Deepika TandonOne of you may need to go part time in you W2 to qualify, here is a good article. https://www.biggerpockets.com/renewsblog/2014/09/25/your-complete-guide-to-the-real-estate-professional-tax-loophole/