So, how can this be avoided to keep the project rolling smoothly and efficiently? 

Originally posted by @Jacob Trogan:@Mindy Jensen please lift my ban, also please let me know how to avoid this I did not copy the same message Hi @Jacob Trogan.

Or, OP can sinply avoid doing business with anyone who does Sub2 as they're likely a criminal or a con artist.  

The reality is that imposing expensive and time-consuming sprinkler installation requirements will drive property owners to either scale back necessary renovations or avoid permits altogether.Currently, when owners propose substantial renovations, they are often informed that their projects will require sprinkler systems, which can cost around $45,000 for a typical three-decker.

They chose to leave voluntarily to avoid an eviction and signed a document agreeing to pay the back rent payments owed (which is a significant amount).

.: Quote from @Skyler Shively: @Dan Deppen Sounds like contacting my attorney will be a cheap price to pay to avoid headaches if I did decide to move forward with one of these.

I also reference this a lot but there's a step doctrine- basically if you're putting a step in the middle only to avoid tax...it isn't valid. 

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

This strategy could give you steady cash flow while avoiding some of the volatility that can come with Airbnb.

Is it possible to avoid taxes on the gains if I buy another property for $564k ($900k - $336k) and make capital investments of $336k?