Purchased SFH for personal living in 2005; bubble burst; went through hardship / loan modification and currently on 40 year; 2% for 5 year (3 years into mod); 3% for 6th; 4% for 7th; and 4.375 for remaining period.  

Are there any modifications to the written lease?

The IRS has provided a safe harbor for certain structural modifications to a building that are not treated as a demolition and thus, not properly chargeable to the capital account with respect to the land on which the building is located.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

Also, I'm sure that someone can correct me if I'm wrong, but I'm relatively certain that this necessitates you to work with cash or private money.

You will need to make some modifications, such as property management and branding entities.

If the tenant violated the lease by doing the modifications, you can try to get them to undo them, but I doubt that will end well.Whose responsibility is it to convert it back, and if it's not converted back, I can't see how it will pass inspection.