I just wanted to make sure there were no holes in my logic.

Also, what would my next logical step be?

see, this is where I start questioning myself, because that logic just makes too much sense.

Can we implement 2% logic on a condo or not?

Everyone should follow what feels most comfortable and is most logical to their situation.

I would bet every landlord here feels the same.In the same logic, a lender would never consider any previous interest received as payoff of principle.

I thought I would give you guys another update about the depreciation thing:  my accountant has essentially advised that we should not depreciate 100% of the purchase based on the the following logic:"As long as you pay the nominal ground rent, the ground rent owner can't sell the land, so I think that land still has value and there should be some sort of allocation to it.

Certainly if the OP thinks there is an ample opportunity to make a gain, it is logical to some extent to think the IRS may too think the same.  

My logic is to offer them more of a return that they are getting with thier money in a savings account for the year.   

Think about this logically.