It certainly is in MA where I practice.You'll find all manner of BP posters, YouTube videos and guru seminars that tell you it's legal - but they're not the ones who are going to get sued when someone finds out that you screwed their grandma out of $50,000 in equity. 

You might need an adjuster out there before you start work but if that's unfeasible, you can't not take enough pictures.. do narrative videos, those are the best. how you decide to move forward, would greatly depend on how well the tenant accepts the blame and steps up to the plate to make things right.

To get started, I suggest checking out the youtube videos, "How to find and analyze a rental property", and "Calculating numbers on a rental property" and the book "How to invest in real estate with no money down". 

Videos?

I made a YouTube video about this loan.

I have seen Brandon Turner's video on it but I just wanted to throw the question out there and see what other people have to say about it.

I am what they call in some of the videos, someone you do not want to by, namely a Jack of All Trades.

I am new to real estate, but have spent the past 3 months devouring videos about working as an agent and about investing (what I hope to do in the future).

If you would like a little more information on this I posted a YouTube video about it on my channel, shoot me a message if you want the link :)

You have a master flipper in your own backyard (Winnipeg) who has tons of videos on you tube about that very topic and so much more.