85LTV ask on a LTR rental is a tough ask, when adding an STR factor, nearly every lender will reduce max leverage by 5%. 

My past clients were in a tough spot and needed to sell asap.

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

Overall, CRE is tough in finding deals right now regardless of asset class, and people are pessimistic about the next few years.  

When faced with scenarios like this, it's tough to answer such a specific question with limited information. 

Because he had leverage.He knew I was in a tough financial spot.

we ran into this in FLA  a few years back when I had 4 starts and I exited that market.. permits  sub base all pretty tough for someone who is not there and already knows the systems hands down and has a devoted loyal sub base.. thats the key in my mind.

It was a tough decision, especially since I had no experience managing commercial properties and knew no one in Ohio.Despite the uncertainties, my wife and I decided to make the leap to escape the hustle and bustle of the Bay Area.

Quote from @Melissa Stanley: This is a tough one.

In terms of maintenance, they are generally safer because you are not responsible for the exterior and common areas and potential leaks, etc.