I agree with your interpretation that it is your closing date on your re-sale of the property.

I may be interpreting things differently than Jon... on number 1 anyway.

You need to transfer the asset to yourself personally and hope this Lender just has the wrong interpretation of the statute OR keep it in your LLC, talk to a good commercial/portfolio lender and they should be able to help you out.

Perhaps I misread the OP, or just interpreted it within a context with which I am familiar.

That will give you a start point.Here is how I interpret part of what the attorney is saying.You mortgage may be properly secured legally, but you may have no security financially.

Most of the lenders act like the know the regulation and treat their interpretation as a fact when the fact really is that they don't realize its their own interpretation that is so restrictive.

Up for interpretation: safe locks?

Secondly, I'm having a tough time interpreting the expense breakdown I received for the last three years from the PM company.

Best to check with the JAG office and have them interpret it for you.

That's not my interpretation of UBIT, based on Debt-Financed Property from the IRS... but I'd seek a good accountant's opinion.