Even after fines and penalties are issued, they refuse to accept responsibility and want to charge additional fees to correct their own errors.

I suspect you may have issues selling, but there's a price for everything.

I ran into an issue with insurance on one of my properties.House built in 1880, 5 units with another in a semi-detached house that has its own address.Insurance before purchase was a bear but I finally got Auto-owners to cover it.A year later they reviewed it and oops your electrical is not up to code and now I have to spend another $30k to fix it or they drop me.If it was only 4 units then it was likely that Foremost would have covered it with a rider.

For some things you need to use ethics and just common sense to decide to do it or not.An example.

When refinancing, Would lenders have an issue with a hard money loan in place?   

This is really disappointing because I am ready to purchase another property today but will not get approved or have horrible loan terms due to a 640 credit score.Does anyone have any recommendations on how to remediate this issue?

Is it common for a broker to ask for an LOI before they can send you over the financials?

This is just one of the items available to them, there's a few other avenues to take but thought I'd mention the most common I've seen.

If so, that could be an issue...Fannie/Freddie have a limit of 10 conventionally financed properties. 

Insurance doesn't cover maintenance related issues or "wear and tear."