She never completed the renewal form.I screenshotted, printed, and filed it away as renewed for the year.

.)- We file our taxes as joint / married- Her tax deduction benefits from qualifying as a real estate professional from the STR can offset my W2 income. - She can use REPSTRACKER for thisI then of course have a plethora of other questions in terms of book keeping (tracking all purchases etc...) but I will save those for another time unless someone has the best offline resources I can start to learn from? 

I did find verbiage but from another jurisdiction "Unavailable for rent means a unit whose owner has filed with the code official a statement signed under penalty of perjury that such unit is not offered or available for rent as a rental unit and that prior to offering or making the unit available as a rental unit, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter...."

Just want to clarify how you got there, to get to $12K you divided 1.2M by 100 lots (of which 60 has homes on them and producing rent, 40 lots are vacant). 

There is no way a PML will wait that long to get all their money back if your property on produced 250 a month.

What would you recommend as the best strategy for accounting for this situation as we file taxes for the 2023 tax year.

A perfect example from my day today, lol, I showed two homes, 2-bed A-frames next to one another, one was producing 120k, the other under 70k (Both with views).

That company supports foreclose bidders they produce a document daily on all the sales with same info I mentioned above and color coded certain props with extra caution Red or Green for ready to go bid with confidence. although this created uber competition. 

And I want to rent out their home to produce cash flow with low interest rate, which they have. 

Sellers and agents often inflate prices based on potential income, but like you said, you want to base your investment on what's actually being produced right now.