I understand that you've asked what you believe to be an honest question, but the fact you've asked it sheds light on a gray area you're wandering around in looking for a plumb-line by which you can measure whether something is ethical or not, and you’ve come up empty.  

A  " handyman " that is not a legal business with insurance would be an employee of the homeowner , builders risk insurance would not cover him for workmans comp . 

Look at it this way, their toilet clogging should not be an issue for you!

Do you find it to be an interesting deal?

Talk shop over coffee or lunch.

I also think it's critical to have someone who is an actual landlord themselves so they not only know the PM business but they understand what it's like to be an owner having to make mortgage payments, keep expenses low, etc. 

Really like that you have shown yourself to be an @ss labeling someone a fraud without doing your full research and you even said you were here to learn and I have told you in every post to look up what options were before coming at me. 

If you find the right buyer this could always be an option as well. 

It could be an excellent deal if I could pay only what is owed, but if it goes to auction it will likely go for quite a bit more. 

If everything else is much newer it could be a problem but all things being equal shouldn't be an issue in and of itself.Good luck!