You've given me some solid pointers/items to take into consideration for future deal analysis, so thank you for that.

There are often automated flags that will be triggered if you do it, so it's best just to know how they will react.

This way, they get the cash they need without selling and without triggering any taxes since loans aren’t considered taxable income.

As for by-the-room rentals, many lenders won't allow that and if they do, they qualify you off of the long term market rents (which, as I'm sure you can imagine, would be considerably lower than the actual per-room rents).

Selling would likely trigger capital gains taxes (unless you lived in the property for two out of the last five years or use a 1031 exchange).

I'll keep you in mind if I device to pull the trigger.

@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event. 

An audit could be triggered by a number of factors that don't line up when run through the IRS's system, and create an exception.

Companies have considerable flexibility in choosing where to set up new operations.

Contractors will make or break your rehab. 2. get 3 quotes for everything. 3. closing costs for refinancing is not cheap and you definitely need to take that into consideration when running your numbers.