If you sell, factor in sales expenses (8-10%) and taxes (ordinary income if owned less than 1 year). 

I called the company who sent someone to take a look along with my property manager but they did not find any leaks or anything out of the ordinary.

If they were collecting principal and interest, the interest portion of each payment would be paying ordinary income tax rates.

@Brit F.This is great!

The IRS may want to charge this to them as ordinary income as opposed to interest income.3.

Sometimes its their visiting family and friends that do the damage, and turnover is costly (and can be unpredictable).A broken window glass is not something I'd consider out of the ordinary for rental.

Given that wraps dont have the benefit of all of these deductions, a typical wrap providing me say 5% interest and $350 a month looks way less appealing when the $350 is taxed at 42% ordinary income level.I like the idea of wraps because once you complete the deal you are 100% free to move on, mostly forget about it and acquire more wraps. 

You're allowed to deduct all "ordinary and necessary" business expenses, which labor certainly is.

Does the sale get realized as LTCG or ordinary income?

I was wondering if this was out of the ordinary.