Also, indicate any safety nets, such as a solid W-2 income.

Many cities allow short-term rentals of primary residences as long as certain conditions are met, such as obtaining a business license and meeting safety requirements.

I also came across the following article which reviews why LLC as a structure is not the way to go.http://www.moodysgartner.com/canadians-beware-united-states-limited-liability-companies-may-be-hazardous-to-your-tax-health/I also found the following to be informative.

@Jay Hinrichs: said "PS Jonathon i am the dream guy all you morby folks are trying to find :) the money"JLH Capital PartnersContactLenderPodcast Guest on Show #222and further@Jay Hinrichs: said "I personally could give a rip about the buyers safety if they dont know any better and get wiped out so what.. but Sellers thats a whole different matter.. a sub 2 gone bad can destroy them financially emotionally physically break up marriages etc etc.JLH Capital Partners"@Jay Hinrichs: said "So thats the reality from my point of view I made a business out of this for many years and my dad made a business out of this in the 70s through the 80s so lots of experience at it.

The level of education, not to mention the high ethical standards enforced within the group, speaks for itself.We have a community of over 10,000 members committed to ethical business practices, and there is accountability for those who do not follow safety standards or ethics.

Safety come when the société is balance in his social-economic aspect.A lot of opinion in this subject sound GREEDY AND ÉLITISTE. 

If an appraiser were to go out there, would it be deemed unlivable or Hazardous?

While that is good for lenders, since the process can possibly be less than 30 days, while other states could take years. it's a hazard for 2nd lien position holders who could not be informed quickly enough to safeguard their principal before the senior creditor forecloses or don't have the capital available to pay off the 1st lien holder to preserve their loan position and avoid foreclosure. 

The squatters threatened the landscape  personnel who were simply trimming trees which were objectively hazardous.  

I would also be added to the hazard insurance as an additional loss payee/mortgagee and have a lenders title policy for every transaction as a way of further protecting yourself.