I am open to either and see the benefits to both.

@Pat MurphyPlease see the following additional considerations regarding taking the property as an "in-kind distribution":1.

I can't remember exactly but I believe the  basement had an old coal storage room the original owner turned into a basketball court :) Can't wait to see the awesome remodel pics once completed. 

Would love to see the exact wording if you have it.Sounds like the property manager messed up and is penalizing you for taking their advice. 

I would think the clock to get the deposit back would start then........ if you want to be the type of landlord that drags it out as long as possible to hold onto that $$, then start the clock at the end of the month....... don't see the point.

See the list of 1500 below.

i just don't see the bang for the buck, unless you somewhat see this as a brrrr opportunity or another live-in flip with some future potential. need a lot more detail than what you've posted, imho.

I will definitely add management and lawn care.I calculated the deal with only one unit rented (please see the image I attached).

If you read point one again, you’ll see the risk...

A discussion worth having with them.I'd be curious to see the math on how you got to $500k more value over 10 years