Not this crazy stuff you see on TV.  90% of S.O. that are looking for rentals specially if it is a higher price like say $1,000 or more are serious people that are trying to rise above the muck and be a better person. 

@Jim Bouchard agreed with everyone just normal wear and tear, it happens. we just leased a brand new construction home and they've had like 4 things we've had to send someone out for (luckily all under warranty), but sometimes that stuff just happens.

Second position lienholder have done some shady stuff in order to delay a loss, including filing suit against all parties or trying to obtain a temporary restraining order.

Also, @Jamie Banks has this stuff down to a science as well.

It's great once you know how to navigate the big stuff.

Although only light "fixing"-- mostly cosmetic stuff. 

Not being in the hard money world myself, there's also a bunch of compliance stuff that would need to be worked through that I don't know about.

Quote from @Bob Carter: I’ve been with them about 8mos and definitely some strange stuff going on.

Quote from @Conrad Tillman: Quote from @Jay Hinrichs: LOL  its kind of like 50 ways to leave your lover.And its very much dependent on your jurisdiction. however I will list the stuff I have gone through the last decade or so through about 200 new builds in 4 markets.1. material price fluctuations. rarely down almost always up pretty much annually. 2. as we all know labor  scarce  and or unqualified and do poor work..

Whoever taught you that I would go to them and do what they did as this setup for an ownership structure in my opinion is far to complex and your CPA is going to be scratching there head at end of year with all the tax stuff they will have to do and how you have to keep bank accounts for each entity and move money form one to the other to the other....