I already spoke with @Phineas Howie about this earlier but will publicly state my opinion for the benefit of others.I do not consider medical collections because they are extremely common and I have no way of knowing what stage they are in.

Once you refinance the house or otherwise pay off the mortgage, you must apply fore restoration of your benefits.  

Everyone has their strengths and some will benefit from having a license.

They get no benefits.

Case & point there is no financial benefit to the landlord to get involved in personal matters or helping the tenant in anyway.

They are providing him with assistance getting his VA and disability benefits and most importantly are keeping him in his home via a grant program for veterans. 

Interesting in my 30 plus years of HML lending I have never made a loan subject to a judgement.. you as lender would be put into second position and the Judgement holder could if they wanted to do a sherrifs sale and wipe you out.. the real benefit to me is landlords pulling credit..just my experience and who I write my escrow instructions..  

The irs can say you are getting a benefit and this it is prohibited.

It also has numerous benefits like low CapEx and Repairs.

There is the positive cash flow while having a tax loss benefit too consider with this method, but if you 'buy and hold forever' (somewhat our plan also) there comes a point where with rising rents and declining interest payments when that tax loss benefit goes away.