The wholesaler who has the portfolio has all of the properties tied to one contract, and due to some prior legal disputes, this contract is actually 3 years old and just received a judicial order allowing the buyer to proceed to closing.

I am using a property I own free and clear to pull out a cash out refi.Yes, secure any credit you will need prior to terminating. 

But if they converted to investment anytime prior to today they are outside the 5 year look back and would have to 1031 if they want to sell and not pay tax.I just saw the end of summer comment buried in the commentary.

As my avg rental period is <8 days, and I have <14 days personal use at the property and believe I can meet the material participation test, this should be a non-passive activity.Specific Questions on Material Participation:1) Do hours logged for material participation in 2022 include time prior to placing the property in service (i.e. first half of 2022)?

How can a direct line be drawn between the MIL's gift 3 months prior to DIL purchasing MIL's property? 

Here in AZ , most of my peers that sold ( I own 2 ) buyer only can do private, commercial loans from your small bank , sba no other options I am aware reason it drives some buyer to buy business but lease the house from prior owner

If  your rule is not to rent to anyone with a prior eviction, this person would fall under that rule.  

You should have verified that it was fixed prior to closing.

After nearly a year of construction and about $40K in costs, all that had gotten done was the laying of the plumbing and foundation, the prior of which my contractor had to redo.

Even with this carve out available, it does plainly state that a taxpayer does still have the option to go back and amend the prior year return - so both answers can be correct.I would have your CPA/EA review your situation and the related Revenue Procedure to verify you are under this section, which would allow filing of the 3115 instead of amending the prior year return.