Hi Ryan, the appreciation might be worth the wait if you can confidently handled the cash flow.  

I am finding the market challenging especially as it relates to cash flow.  

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

Quote from @Jonathan Bombaci: @Scott Trench Challenge accepted!

Attend seminars, join online forums, and read up on the latest market trends to stay informed.Remember, real estate investing is not without its challenges.

You develop relationships with a handle of people that are creating notes and you help them recapitalize, it is like a conveyor belt of deals coming to you.  

From all parties it was not handled right.

If convicted of bank fraud you may be facing large fines of up to $1,000,000 and/or imprisonment of up to thirty years.Posted without comment.Okay, so one comment:Just because someone in your community says it's okay to do, better clear it with the feds first, or you may be talking with them later..This reminds me of a Subto in California that went bad and wasn't handled correctly. 

I know this is an unpopular opinion around here that you won’t see on the front page of the daily BiggerPockets newsletter, but it’s the truthI get where you're coming from, and I think you make some good points about the challenges of the short-term rental (STR) market right now—high housing prices, mortgage rates, and fierce competition.

@Michael Challenger I scraped all the cash I could find and borrowed from family.