I have never done this just thinking out loudNo legal advice.

I will preface this with the fact that I have a legal background, specifically with estate planning and asset protection.

In 30+ years we've been sued 1x (legal blackmail over a tenant's drunken trip/fall) which the insurance company settled for $1,500.00).We've been using some privacy tactics to keep our names off the county recorder and the target off our backs.Further, we review our insurance coverage and premium annually, just to keep on top of any changes.As with all insurance, it seems to be a waste of money... until you NEED it!

Im self employed, roughly make $130k gross anually, 1099 NEC , no debt at all, 740 credit score. 

Quote from @Stylianos Kalamaras: Yes they are, they cost me $800 knowing they would not close my deal and waste my time, if I had any possible legal recourse I would take it they shouldn’t be allowed to operate it’s really sad.  

In the beginning the goal would be to get into the market so you could start taking advantage of appreciation, tax advantages, and debt paydown. 

The income doesn't really cover expenses plus debt service. 

Are there other legal or financial consequences I should be aware of?

Hiring a PM can save you time and headaches by handling tenants, maintenance, and legal stuff.

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?