Leverage is a big factor in real estate investing, as investors can control large assets with relatively small down payments, increasing their potential returns (and risks).6.

Actually, to allow access it is an authorization. 

Every bank at that time had way too many non-performing assets on its books.

For long term, the main benefit is having someone else pay off the mortgage on an asset while you collect cash flow.

Given your financial constraints and the property's ineligibility for historic tax credits, this approach allows for reinvestment into assets more aligned with retirement account rules.For future real estate investments, you don't need an LLC for tax reasons.

Are you aware of some actual legal authority that validates the IRS opinion on this issue?

Lexington is a weird market with low occupancy, 90-92%, and there aren't many assets in the market.

while I totally understand the frustration especially purchasing what was supposed to be a new and ready to go asset, but these things are pretty common so don't feel to discouraged. 

Quote from @An Lan: I am not a professional real estate investor, I just invest in houses as a safe asset and do not choose to rent them out.

Leverage  anything in the US  so you can  use the cash to buy in CR  ( US home / 401K / other assets ..etc)  ...pura vida !