Thanks @Austin Youmans, I have been with holding my situation from my family. but  i think a long conversation is over due. i will do that tonight. thanks again.

If you are using an LLC then who is responsible for filing taxes (probably you as there is a withholdings for foreign nationals).

The tenant may also withhold rent, but in response, the landlord may sue the tenant for non-payment of rent.

I'm thinking of offering him to change his lease to a 6 month term and withholding his security deposit.What would you guys do in this situation? 

Second, it isn't free to Arbitrage, your business can disappear in the wind along with holding all the leases and the improvements /furnishings you are stuck with.

She wouldn't be able to sell, because she doesn't have the money for the tax withholding, even though she's not realizing any profit?

Will you be fine with holding onto it for longer?

This will give you control of whether and when you repatriate retained earnings to Canada and will lower the withholding tax on the U.S.A. side of things when you do repatriate ...

In the past we didn't factor that as well, and look at the notes now similar to buying the property, you need to get it low enough to cover rehab, and the plethora of costs associated with holding/working out the note/mortgage, AND make a Profit! 

This has a specific legal description and as an attorney from California and one from Florida pointed out, if you are not lying or withholding crucial information that would make the lender unable to come to their own conclusion as to value and what they will settle for.