If you miss that deadline (because of a failed sale or a tenant that won’t move out.) it’s all taxable, if you move back in to it as your primary it’s only a pro-rated tax free gain when you eventually sell.

If all else fails, as the new owner, you can do an eviction on them once you buy it.

Not knowing what to do, they probably didn't even know what to say, so they buried their head in the sand.I'm not justifying this behavior, I find it repulsive, but I've seen it so many times in the decades I've been in this industry that I'm just reporting what history has taught me has likely happened here.It sickens me to be the one to deliver this news--the sponsor should have kept you informed every step of the way and failed in their most basic duty--to communicate with investors.  

That is why the old 20-property limitation system failed and was eventually abolished because it was not accomplishing anything. 

While the company's legal counsel is confident in their financial stability, having a guarantor ensures that you're protected if the company fails to meet its obligations.

Let's say you rent it to an operator, and their business fails, but they leave all the residents in place. 

So many people purchased in the hopes they could get in on the cash cow, but failed to see how temporary those profits would be.

Make them use their renters insurance or evict for failing to upkeep the unit and lease agreement.

I come from a jurisdiction where you claim can be declined if you fail to show proof of tenant screening documentation especially for property damage by the tenant. 

Mr 605 credit will not dive as much if he fails to pay you money owed as it is likely his score already reflects an occurrence or 2 of not paying his debts.