When you say joint venture, you mean modifying the lease terms with the tenant after the fact?

I understand that passive losses cannot reduce your taxable income and must be rolled over to be subtracted from future passive income, UNLESS you meet the special allowance that says you may deduct up to $25k in passive losses from taxable income if your modified AGI is less than $100k that year.

Yes, if you change your single-family home from Short-Term Rental to Long-Term Rental in the second year of ownership, you would need to adjust the depreciation schedule for tax purposes.Recall for residential rental properties, the IRS allows a depreciation period of 27.5 years under the Modified Accelerated Cost Recovery System (MACRS).

Regarding Form 3115, we provide a draft form as a resource and reference for your accountant, for them to review and modify if necessary.

The IRS considers fence replacements as improvements that extend the life or value of the property, even if it’s replacing an old, damaged fence.The depreciation period for a fence on a rental property is 15 years under the Modified Accelerated Cost Recovery System (MACRS).

@Therese V.That's a new version of MIRR (Modified Internal Rate of Return) to me.IRR (Internal Rate of Return) assumes that all cashflows are reinvested in the business at the rate-of-return.MIRR assumes all positive cash flows are reinvested at the business' cost of capital and all initial outlays are financed at the business' financing costs.  

This is not a rule that the bank can change or modify. 

But after that we decided that our offers would we would only submit our cash offers on deals where we were either going to use our cash or we had an arrangement w/ a private lender that did not require us to modify the contract to financing.  

Are there a few lessons learned I could modify my strategy with? 

So, all the normal options of selling the property, getting a tenant, negotiating lower payments, restructuring  the note, modifying the note, etc. are no longer available to the seller/borrower should the note be called due.