Many publications from 2009 and prior fail to include the guidance and clarification from FASB on the treatment of troubled debt.

While there you can visually check to see if there are any blatant problems.

Our joint venture partners, who are usually on title, are never informed of the presence of mold in our properties...we don't even charge for the Microban treatments we do on every home we buy just as a precaution.

And depreciation is taken as a business expense and then the net profits must be distributed to get the tax-treatment of a REIT, right?

Along with that, they tend to be more trouble than other tenants, trying to hold the money they paid in advance as a token that gets them preferential treatment, and an allowance to bend the rules. 

If you insist on marking it visually, we will allow you to place a removable tape like this.

If the LLC can elect S-corp treatment, doesn't this level the playing field in all regards related to taxes?

Yep, some things are better visual and some things are better verbal.

What is described above is similar to the tax treatment of wrap notes where the IRS wants to ignore the installment basis and tax all of the phantom gain in year 1.

That would not allow you to treat them as business expenses for this year, but add to your tax basis.Even if they were indeed separate, because they happen within a short timeframe they could be deemed to be part of one big project.You need to be careful to document them as separate repairs to the property.It sounds like this could be difficult due to the size of repairs that were done.As Charles points out you can definitely split the depreciation and have items like flooring, appliances, window treatments depreciated over a much shorter timespan.