Fannie/Freddie were nationalized in 2008 precisely so they could take the losses instead of the TBTF entities that couldn't take the losses without destroying the economy.

Understand the laws and take steps to protect yourself so your investment works for you rather than against you.I am sure my response isn't precisely what you had in mind, but I pride myself on providing a diverse array of information to any particular response.

Thanks for confirming my understanding in my previous post - I find that understanding so... strange, because the 500 hours that pass the test for materially participating in "LP + Rental" grouping is precisely the same 500 hour that pass the test for materially participating in "Rental" alone. 

That being said, the scenario you provided isn't quite the same, so I will slightly modify it here to make it more similar, in order to demonstrate a point - counterpoint discussion, as this is a thing where right and wrong aren't always precise and clear.As a young man, you are dating that beautiful girl, and you decide to let her go (you have the cash in hand, but decide to pay down the mortgage by giving up the cash).

If you do give your tenants a rebate, calculate that rebate precisely, explain EXACTLY what that rebate is for.

Now, the reason why you should not be doing delayed financing is the precise reasons you listed:  you can only receive the lower of 2 values. 

Any insight on how this can masterfully be done with surgeon's precision would be greatly appreciated.

Thats precisely what I've been telling @Bob ad nauseum.

This is precisely the reason why you and I should borrow from HMLs, but newbies should not...we know what to look for - they don't, and as such are susceptible to being taken advantage of.  

So many other countries embrace modular / component construction, as it's more precise, energy efficient, etc.