Regarding your question about the 5-year period, I believe you are talking about the built-in-gains (BIG) tax but you may also be talking about Section 351 transfers.The BIG tax allows you to avoid taxation at the highest corporate level on your built in gains when you convert a C Corp to an S Corp as long as you don't sell the property or otherwise recognize those gains within a five year period.

With option 2, my costs go up $350 immediately beyond the normal insuring cost and will add $350 additional for each property I add since they don't aggregate or recognize any savings by having a central umbrella policy.

@Nicole Sorensen Hull, You can certainly access spending money by borrowing against a property  but borrowing money from equity does not relieve you from recognizing gain.  

In the context of financial services, secondary legislation is generally legislation that has been drafted by a regulatory body empowered to do so pursuant to the primary law by which it is established.It is also important to recognize the importance of several other important factors: Regulatory Codes, Rules, and Regulatory Guidance Notes when determining a course of action.

Now that the city has recognized a sale, I should be expecting a new tax assessment to reflect the latest sale price of 70,000$ correct?

I consulted other affiliates, so I'm aware of their goals.Human nature, many volunteers want to be recognized, a subdivision brings more recognition, also more money from donors and plays well for these types of organizations. 

Fortunately she recognized the value and convinced me to go for it. 

Don't get me wrong, if I had my way, I would be buying apartment buildings and all the duplex's and triplex's I could get into in Southern California's wine country, just not savvy enough to recognize or structure those deals and make them happen.  

It was new, exciting, and a challenge.I recognize that I simply enjoy that design part of the business, so I do still pick specific ceiling fan designs if time allows.

Also, if your guy uses the typical wholesaler BS POF's and get out of jail clauses, the listing agent will likely recognize it for what it is, and you won't pass go.