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

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

I do agree that the rates you are seeing are not common at all.

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.

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

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

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).

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.

And what do I do if he doesn’t answer or avoids giving me this info (I have read other people saying this was an issue for them)?

Any advice on topics to touch on in a contract that is commonly forgotten?