Strategic timing matters, especially with multi-state portfolios.Real Example:Investment property sale in 2019Federal noticed unreported gainTwo states involvedTimed response to fall after state deadlinesResult: Only federal adjustment appliedInvestors: What's been your experience handling tax notices across multiple states?

Turning over some kind of commercial property is more labor intensive but it also scales quickly because of potential returns.

Another idea could be to see if the HVAC system can be adjusted or modified to better separate the airflow between the units.

So no, tis is a horrible deal for you.Now of course I know nothing about your property (since you provided so little detail) so if this is a huge 5 BR house with pool on a lake somewhere, then you need to adjust my numbers.

Gain is your net sales price minus your adjusted cost basis (purchase price plus capital improvements minus depreciation). 

If the project is in Canada then I would look to an attorney that understands international law as it could be more complex.Personally for something along the lines of what you are doing I would look to partner with another developer vs trying to raise the capital as that will be less labor intensive.

Whether it is the increase in hurricanes, intensity of hurricanes, rising sea levels etc.

Around year 7 or 8, ideally year 10, re-assess your equity and maturation of those debt notes and re-adjust how you invest to suit your needs. 

Start small, evaluate results, and adjust gradually.

Or, have they adjusted their project to accommodate a higher interest rate environment?