If the deal isn’t going to protect your buyer why would you as a agent suggest such tactic where you’re leaving your client open to buying what may be a pig in a poke.  

Honestly it's mainly just the truth not a negotiating tactic.

A contractor doesn't need to sell up scare tactics about how hard it is to run their business. 

I've used this tactic many times and it works well.

So that's all smoke and mirrors used car scare tactics they are telling you.. they may put a mortgage on the house but its a transfer of the LLC they are not foreclosing. you have just agreed to transfer your interest to and they take over ownership of their own mortgage..

As much as I would love to do the BRRRR tactic, I am not confident in my rehabbing abilities and am just looking to go with either a ready to move in, or one that needs minimal repairs.

He will use every possible tactic the courts allow to drag it out as long as possible to stay rent free if he is a professional tenant.

What lead generation tactics/websites/squeeze pages do you use? 

What tactics can I use?

When I was deciding on whether to bill back water/sewer for my first rental, that tactic really helped me get an idea of what the norm was in my area.