Its their own decision and they can all make up their own mind if they are satisfied with the current market risk/reward offering. 

That does not mean that individual investors will not get good service or find that rare person who really satisfies their needs and desires as property owner by charging basically nothing, but I have not met a high quality management company that did not know how to structure their company to be profitable...and then be able to provide over-the-top service to their clients.I have consulted with a lot of property management companies and the best of the best are set up as business service providers and most have a structure to capture at least three revenue streams and provide a great service to their clients for each.

It's more satisfying than it should be and honestly reveals some of the darkness in my heart that I take such joy in watching our calendar book up before theirs. 

Permit: City permit office lost most of their staff and our application was given to someone else 6 months ago after we had nearly satisfied all the final requirements and the new staff member is requiring a whole new laundry list of requirements ($) and delays in issuing permits across the city because of staffing issues2.

After living there 1 yr you will have satisfied the requirement for owner occupation.Now, after the 1yr you say you decide to move out of your 1st property and lease it out. 

See (INSERT BP ARTICLE) for further detail on eligibility for the 45L tax credit.Increase in Tax Credits for Homes That Are Energy Efficient$1,000 for multifamily units satisfying ZERH criteria.$500 credit for qualifying multifamily units meeting Energy Star requirements.$2,500 credit for single-family homes meeting Energy Star requirements for new construction.$2,500 credit for multifamily units built in compliance with optional labor standards and meeting ZERH criteria.$5,000 for multifamily units meeting optional labor standards and ZERH requirements.$5,000 credit for single-family homes built to Zero Energy Ready Home (ZERH) standards.Does My Home Meet the Efficiency Standards?

At the end of the day, are they proportionally as happy or satisfied or wealthy as we are at the same time frame?

I'm reading USC 2410:...Where a sale of real estate is made to satisfy a lien prior to that of the United States, the United States shall have one year from the date of sale within which to redeem, except that with respect to a lien arising under the internal revenue laws the period shall be 120 days or the period allowable for redemption under State law...All good on the IRS 120 days piece, but I'm not clear on the 1 year piece.

(f) Unpaid assessments under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) that are not satisfied as a result of the sale proceeds being applied pursuant to Chapter 1.3 (commencing with Section 4671) of Part 8, or that are being collected through a foreclosure action pursuant to Part 14 (commencing with Section 8830)of Division 10 of the Streets and Highways Code.

I'll have to assume that you satisfied the material participation test and hence were able to take losses from this property against your non-real-estate income.