However for the latter with the declining population especially of this zip code even with the new Nike distribution center nearby may be a real challenge.

Others (like myself) prefer to specialize and become masters of using one technique to solve certain problems.What's not to like?

That appraised value will be used to determine the taxable income amount of the distribution. 

My last two properties I bought, no money down I used the same technique on both.

How is this $10k distributed?

Unfortunately, the settlement wasn't the only problem with property (voids beneath slab, issues with plumbing, "interesting" repair techniques, and a whole of lot of other things that added up to a "no" for me at the price and my current experience level). 

I hope you got a good deal on the house, because its now not as good.if you want to avoid eviction, consider cash for keys or a myriad of other similar techniques to try to get the tenant to leave

Or is it tax deferred until when the distribution is made later?

That is a really great book and I find the technique he describes very helpful.However I feel like there are a few items where it's going to be hard to estimate their cost by myself, even with the described technique.

They are fairly common once you have built up enough equity.One tax issue that you may want to be aware of (if the commercial property is in an entity like an LLC) is the debt-financed distribution rules.