Lenders earn no depreciation and actually its worse because the interest you earn is taxed at ordinary income rates.

Given the location and current market climate with an anticipated delivery in summer of '24, what would you say is a reasonable $/SF for a 2 bed/2 bath condo with a patio and plunge pool?

Tenant pays for almost everything, including HOA, property taxes, ordinary R&M.

I think the sale triggers a change from passive to active and it can be used to either lower basis or offset capital gains/depreciation recapture and if any is left your ordinary income.  

You will pay ordinary income tax on that interest.

Your total tax % on long term capital gain income is very unlikely to be as low as 15% -- but it's still almost certainly lower than ordinary income.   ** Christie makes a good and important point that just paying the tax up front will give you greater flexibility in terms of reinvestment options. 

We have also added french doors to the office, a paver patio outback, and some new finishes on cabinets.

If the walls have to be repainted, that indicates something beyond "ordinary" wear and tear. 4.

The condo is on a PGA golf course - you can walk onto the course from the back patio. 

Reason I ask is most do not realize the interest income is taxed at ordinary income rates, so if you are in a higher tax bracket, that 8% you are getting ends up being in the mid 5's, which is basically the equivalent of a CD right now but just a lot more added risk.