It works out greatLong term low impact tenant at higher then market rates.  

Yes, the property was in service the prior year.Taxes have not been filed; however, I had enough expenses related to the property the prior year where the cost segregation study wouldn't significantly impact that return.

@Remington Lyman yes that's the direction we are headed, but do you think zoning will impact (if its marked as commercial, but used as residential??)

@Scott Trench president of BP could not have been much clearer “The practice, when used this way is meant to mislead, and those who ask for, give out, or receive, proof of funds letters in this way are not welcome here on BiggerPockets.”more important you are promoting a fraudulent POF that has high chance to adversely affect the seller if the wholesale does not find a buyer.  

For Class C+ and below, the age of the home, the socio economic status of the tenants, and the neighborhoods in which those properties are located impact the month to month profits.

Personally I would pick option 1 because you cash flow is already high and so a slightly lower cash flow with higher LTV has relatively minimal impact on cash flow.

Yes, you can potentially use a bad debt deduction to offset your taxable income, which can indirectly reduce the impact of capital gains.

D you think the lower rates will have an impact on the rental vacancy rates?

Impact of Rising Insurance Costs and Property TaxesOne of the most significant challenges in the Greater New Orleans real estate market is the rising cost of insurance.

I would throw caution at giving credibility to news stories about rates driving people out of Florida or increased natural disasters impacting rates.