By this time 18 months have passed and the property through neglect, no maintenance, loss of tenants, etc. may appraise for significantly less than amount owed.  

So if your tenants don't like you they can do this just to stick it to you.

Has anyone had any experience with this company?

Purchase price: $515,000 My vacation home on Grand Lake What made you interested in investing in this type of deal?

Is anyone aware of legal issues with this?

Ive scrolled thru countless forums, thru BP blogs and even tik toked as close to this question.. 

You can make an election (be sure to speak with your CPA about this) to treat all of your rental activities as a single activity.

Quote from @Padam Neopane: I would not attempt this on your own, especially the first time.

I stand corrected:)They do have an office in Metro Detroit and while we're far from perfect, we seem to get a lot of their unhappy previous clients.In our opinion, they built a system for Class A rentals - where tenants have 680+ credit scores and rarely have to be evicted or trash properties.They then tried to apply their processes to Class B & C rentals and that's when their service issues increased.All this caused them to recently significantly increase their Flat Fee pricing and monthly minimum charges.

This will definitely help!