And then if you get a squatter in a pro-tenant law city, it'll be a long process to get them out. 

Any laws against repaying the loan in stocks instead of actual cash?

This is my practice house because we are building a 4plex (with parking!)

What I do know is I don't plan to leave any crumbs 😂I also am aware of laws that say I shouldn't say things like, "I'm offering 8% return to someone who has the liquidity/resources", if they are not friends or family.

You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.

Several reasons but primary is case law there, and the way things are set for LLC's, it's a very conducive environment. - Use the "asset island" method from start.

Deposits from the tenant.Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina.

The cities laws make landlord very difficult for raising rents and evicting tenants. 

Just seems like an odd business practice to shovel everything under the rug.

Many will also require a third party due diligence report from a company like Mick Law or factright (which they run around $30-$50k).