As a local government executive I was sued twice (in my capacity as city manager), have been sued once by an insurance company (abrogation effort) and once by a private individual (stepdaughter in car accident in my vehicle).

Luckily, it's directly spelled out in our governing documents that assessment debt can't be passed from previous owners to new owners. 

I finally decided to close the doors mainly because the unit used was not available anymore, but also because the regulations got stricker and stricker over time.Now, if you want to use your 2-4 as an STR, you need to show proof that you are living in the unit you are renting by sharing a government-issued ID with that exact unit or your tax exemption form.If you have a building over 5 units, it's a bit easier but still challenging ( you can rent up to 25% of the units out for airbnb)...the few people I know that are successful are NOT the owners of the building, but more so the operator of the airbnb unit aka str arbitrage

The government auto deposits the rest of the rent directly into my account the first of every month

The government is now buying housing for low income families?  

Down Payment Assistance: Proposed up to $25K in down-payment support for 1st-time homebuyersMarket implications under Harris include potential stabilization of home prices through increased housing stock, enhanced affordable housing options, reducing competition in rental markets with a greater focus on urban development and rental price controls.Savvy investors may want to focus on affordable housing opportunities and urban renewal projects under a Harris administration.Former President Trump will likely focus on deregulation and private sector growth, emphasizing market-driven solutions and reduced government intervention.

Red tape = dealing with the government, getting the house inspected and approved, learning the procedures of Section 8 so you do everything the right way.

Face it, it costs money to run a government and provide services, and have reserve capacities on standby to do things.

There are rules that government what can be reported once the debt is charged off.

@Eric Hempler besides the risk of mine government I can give you names of people who were sued by investors.