I reviewed Form 8824 and after much research I generally feel comfortable completing the form as well as how to depreciate the carryover basis and additional (or excess) basis using either of the two allowable methods (general and simplified methods).  

Some local credit unions and banks can offer great terms in the 75%-80% LTV range.If you’d like, feel free to reach out directly, and I can share some connections that have worked well for me over the years.

The only difference is that there might be an explainable rationale for holding on to a property, such as a well-founded belief that equity gains are coming (such as owning a house in a rapidly growing area or property where the next commercial boom is headed), whereas with gambling your odds never change regardless of your losses.

Reach out to Christopher Price....he's in Seattle and knows the area well!

I can provide more info once I see where the place is located to get a feel for the area.

The applicant has solid credit score of 750+ and has a good household income as well.

ADU providers (designers, developers, etc) state the appraisals have not caught up with the true value of he ADU.  

house was full of disabled children smelled of urine.I knew I could not evict them.. so what to do.turned out the well was also on the neighbors properety.. so another issue.Asked the owner who owned the 4 acres behind her..

Anything that sells well below median is doing that for a reason.

Happy to connect anytime as well if you're interested in hearing about the town.