Yes if you hold it long term (really long term), you may get back the same amount that you would have received by not paying capital gains, but you have to hold it long term AND have the house appreciate. 

Some banks required us to get full apprasial if loan was over a certain amount 500k. 5.

In the same amount of work I could find an undervalued deal in my market through existing channels.

Because you are essentially buying into an existing business, the sale of it could generate a disproportionate amount of tax for you given your time in this deal.

With the amount of support they provide I am not against settling for an 8/10 deal. 

Basically, more than a certain amount of STR and MTR in the same building were considered a hotel and I would have had to have 24/7 staff on site.Were you able to get around that with the local municipality?

For example he is trying to place a bookcase door to access a small amount of storage from the bathroom.  

Or should I wait it out a couple of years until I have a larger amount saved up.

Have heard some PMC's allegedly offer other agents a ridiculously small amount like $200. 

You can add different ways to reach out to improve your conversion for owners you are hitting or you can increase the amount you are sending.