By God's grace, last month, Doctor #14 figured out what was wrong, and I am now on a treatment plan.

Flips are taxes are ordinary income in the same year, but rental is not taxed because you are not selling rental each year for profit. and eventually, when you sell, it will have capital gain treatment.

Our agent said treatment took place earlier this week and repairs are being completed too.

I currently work with a CPA who does not specialize in real estate tax, and I'm second guessing some of the answers she gave me recently that pertain to tax treatment of our rental properties. 

During this period the tenant handles all property management.right agreed.. but that does not give the person that posted this the ability to buy with no money ... this guy already owned it. its just tax treatment.  

Even if this is the correct treatment, it might be good time to sell some of your property so that all the capital gain is offseted by the entire loss.

Reason I ask is typically you can't get LLC treatment if a property is financed.

That is fine if you are flipping because that is the proper treatment there, but it is a major problem is you eventually also have rentals that you occasionally sell (you also cannot 1031 inventory, so dealer status is also problematic there). 

The key that qualifies property for 1031 treatment is the actual sale of real estate and purchase of actual real estate.This is where the fund will not be available because you are probably not purchasing a tenant in common interest in the real estate itself. 

Friends push boundaries and get special treatment....great customers do also but not to the extent of what friends get.... this is a business, not a social event.Be professional, courteous, kind and respectful..... but run it like a business