I am heavily leading toward prorating just the one day accompanied by a written explanation of the prorated day including “living condition language”.

With regards to the vandalism, I've already thought of using temporary security systems when a unit is vacant in the future (hopefully that puts me on the right track if I'm asked for an explanation). 

Conversely, a CD or an IRA/401K that is less liquid might raise some eyebrows (but would probably still work, accompanied by a brief explanation such as the one you provided above). 

So if a municipality tries to condemn or declare your property as a nuisance, there are numerous steps they must take before they do so.

Once I get action on a listing, I start my phone calling campaign to try and get more so my client gets the best price for their house.It also does "Just happen", but if you want another explanation.

In my experience a reasonable explanation builds you're credibility and lowers the chance of the other party being angry.

@Kevin Means Just run your numbers in the BP Calculators numerous times and have someone else review.

NOTE: Consult a CPA / Tax Advisor for a detailed explanation of your tax liability. 

The difference between these two numbers is that year’s net appreciation and principal debt payments less sales expenses and income taxes.The numerator of the formula is the property’s cash flow and increase in the equity for that year.

Jared,Take a look at these articles and I think you will be able to make a decision.http://www.themoneycommando.com/umbrella-policy-vs-llc-asset-protection-part-1/http://www.themoneycommando.com/umbrella-policy-vs-llc-asset-protection-part-2/ They dive into very detailed explanation as well as many risks/benefits & possible scenarios in which makes better financial sense.