I have extended my loan (at a cost of 2% and an increased rate), once it hit maturity at the one year mark. 

In judicial states in which the foreclosure process often takes a year or more, this not only generates income, this also typically mitigates property deterioration, vandalism, and other costly issues which diminish the value of abandoned properties which remain vacant for extended periods.

The premise of those opportunities are based on you living there for an extended amount of time.

Quote from @Neeta Agrawal: For context, we gave the tenant a 60-day notice for non upkeep and no repair communication in 2023 and then extended it for 30 days upon his realtor's request, setting the move-out for May 31, 2023.

The house is a foreclosure so we cannot extend closing date.

Rents have softened, though, and currently experiencing an extended vacancy in one.The advice you're hearing here is sound. 

He did try to work with me by extending my time from 6 month to a year which led me to ask him question about his turnover rate and success rate of his mentee.

I would lean towards recommending that you pursue the deal - plus having the property remain in your family may be a net positive for you and your extended family regardless of the ultimate financial return. 

@Nate Pucel The depreciation basis for a rental property includes the purchase price plus the cost of renovations and improvements that add value or extend the property's life.

Rental Property is located in Upstate NY in Oneida County.I have a tenant who is currently scheduled to have their lease end at the end of February; they will have only occupied the unit for a year at the end of their lease.I'm not looking to extend their lease and would like to have the unit vacant upon lease end.