Account Closed mortgages are usually created by mortgage brokers (especially due to new limitations set forth in the Dodd Frank act from what I understand) and mortgages are amortized over a certain period of time. 

The expenditures included in the total acquisition cost must be fully documented by theborrower.When the installment land contract was executed more than 12 months before the date of theloan application, Fannie Mae will consider the mortgage loan to be a limited cash-out refinance.In this case, the LTV ratio for the mortgage loan must be determined by dividing the new loanamount by the appraised value of the property at the time the new mortgage loan is closed.

(Attorney specializing in predatory lending said that statute of limitations has expired since 2006) Thank you!

@Karen Higgins Short answer: If you OR your husband are not a 'real estate professional' then unfortunately there is a limit to how much of the passive losses created by depreciation (accelerated or not) can be used to offset your 'active' income.

My current hurdle (and I'm imagining this to become more prevalent with the federal limit on property tax write offs) is that our exposure with the LLC. having a free and clear asset is large and homeowners insurance is denying us when I ask for a LLC.

There are several more you should ask, but I was limited to 3

Either limit the PM fee to 5% in the lease contract or exclude NNN fees from the agreement with the PM company.

However, what they don't realize of course is that this limits the possibility of a purchase to cash only for an investor because many lenders will not lend on a vacant property.  

I think the price they paid is not really material here because at the end of the day, they own the asset now and will be looking to maximize profit and limit holding time.  

You can tackle the smaller ones first to ensure your DTI is within underwriting limits.