Theyre just ARMs with a different name and a one year adjustment period.

Most real estate sales have two negotiations: The first before the contract is signed, and the second during the “inspection period.”

For a Lead Safe certificate (which shows that lead dust levels are within tolerances and has to be re-done periodically, as opposed to Lead Free, which shows that there isn't any lead to worry about and doesn't have to be renewed) almost all scenarios can be remediated by cleaning or repainting (followed by cleaning, of course). 

In other words, the IRS gets the bigger of the redemption periods - and no party gets a longer redemption period than the IRS when you look at it that way.

Is there a typical minimum period where the penalty applies, like 3-5 years?

We are also in a period of stabilizing the properties so we also have significant CapEx, most of the construction being handling by the property manager's in-house crew.  

A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

PERIOD!

However, this generic statement is useless for many reasons:- your two years are never identical- even if you expect them to be identical, we don't know the future, and things can change- you likely have a number of special factors that change your tax outcome, some of which I mentioned above and others mentioned in earlier comments on this threadWe are also assuming that you're selling outright for cash and not reinvesting, although you have other options such as installment sales (aka owner financing), reinvesting into REITs/DSTs, opportunity zone funds and more, as mentioned in other comments.Finally, nobody brought up what I consider the single most important factor in your decision process: you sell when you have a good offer, period.

I’ve found it best to start over from scratch but maintain the old listing title and cover photo for a short period of time to get any potential guest transfers.