At the end of the year, I share that sheet to my accountant and he does my accounting without any issue. 

Is it a headache or is there any type of legal issues with this method?

I have considered carpet but that won’t help with the heating issues.

The issue was eventually fixed but many landlords lost thousands of dollars.

You will pay a higher interest rate and need a bigger downpayment.What you need is good STR insurance with plenty of coverage to protect you.An LLC offers some protection with contract issues (like kicking someone out during their stay) vs negligence, which is what you need to watch for.

In my market, this can easily lead to increased home prices, closed transactions that had no inspection where there are a lot of issues that could have been identified by an experienced agent, and a bad taste in the consumer's mouth.  

Sure, it's minorly annoying ... but if I got a call from someone who was able to solve a big problem for me and was nice and polite all the way through, I would have absolutely no issues with that.

Could you share with me what bank you found that issues HELOCs on Rental Properties?

These tend to be mostly cosmetic interior rehabs (not always but usually) and you can usually avoid the big hidden issues that single family homes can have (structural, environmental, plumbing etc).

I have 8 rental properties financed through conventional loans and I’m having issues getting more.