Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

When accounting for carrying time on the bridge debt, taxes and insurance or alternatively over raising equity to take down the land, the costs add up quickly.  

Their taxes and insurance may have doubled and they can't afford the house any more.I think geographic is tough because there just isn't typically the turnover any more in most areas. 

I'd speak with your accountant about the potential tax consequences.

They also like the tax benefits associated with ownership.I've taken both approaches and have benefited from each.

Others may incorporate land trusts for title transfer purposes or to address specific tax considerations.

(Loan paydown, tax savings, etc etc..).

Of course, I had to make additional assumptions about the cost of property taxes, insurance etc. 

The Annual Owner Statement should break down all the expenses that the owner's tax professional then figures out how to deduct and on what tax schedule.So that way the owner can expense everything throughout the year?   

The other watchout is if you lose your job you are required to pay the money back quickly, like 30-90 days with most 401K's or the loan gets converted to a withdrawal that comes with tax implications and penalties.