He was actually rude and overtly mean to his tenants in front of us, and he publicly defended all the deferred maintenance. 

@Jorge Patino I'm not familiar with NC laws but in Georgia, you must have the defendant personally served in order to get a money judgment.  

The counterlawsuit allowed us to take control of the conversation vs just defending ourselves in court.

The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention"so all though wholesaling is taught and defended especially on BP its not really legal the way most do it in virtually any state if you actually read the law.. but that does not mean it does not happen every day of the week .. just depends when a state wants to focus on enforcement.. so you can see our state will do something if a complaint is filed and I know they will.. one of my bird dogs got a cease and desist had to go to a hearing with a lawyer and paid 5k fine.. all for putting a forsale sign in a yard on a home he did not own..

They do not care what you put into Capex/repairs and management (it just is a place they can hit and defending it is a waste of time).

Are there ways to defend against this?

I don't know how Bismark got on there I have flown my plane in there a few times on gas stops not sure on that one.. other than maybe economics.Any way these are always fun to have those defend their home turf.. there is good in and bad in all no place is perfect..

I also spent almost 7 years in prison for defending myself.

I also spent almost 7 years in prison for defending myself.

So, if you live in one of these states and hold title via LLC, and you need to appear in court for any reason, perhaps including an eviction or to defend against a lawsuit, you would need to hire a lawyer.