From the information you have provided and don't even feel that you have done anything wrong.

It not a loophole, it's part of the tax code.I would ask your CPA this question, people not qualified to answer this could give you wrong info.

Here is what I've learned following interest rates for a long time...If you listen carefully to the experts, they are wrong 50% of the time. 

This is totally wrong for several reasons:1.

What portion of the deal did those managing funds get wrong? 

I even had a buyer lined up for the place as well for when the repairs / renovations were atleast 50% or more done.Also forgot to mention that their own system often has wrong or outdated info on the properties as well.As you can see I could go on but I dont think a book is needed haha, but this should give a good exampleSorry for the long post and poor formatting on it

Also I would run it by an attorney The big question is are you in a place to refinance the mortgage or pay the taxes if something goes wrong?

Don't get me wrong NW AR is booming! 

This way we could even do some sort of hybrid seller finance until loan assumes kind of deal, or am I just completely wrong in all of this?

Jyoti and her colleagues are still trying to figure out where it all went wrong, she says.