Let me summarize this for you again, I am not seeking a legal advice, I need hand holding to confirm I am reading the semantics of the deal properly !

This depends on the lender and what is charged in the orig fee.

Doug, I was in this situation 6 months ago.

Looking for some advice on how 1031 will view rehab costs/ ARV on something like this? 

@Jonathan Greene infers from your use of the term "lease" that this tenant started off on with a lease for a period of time such as 1 year and then when the lease ended no new lease with signed and the tenancy continued as month-to-month under the original lease terms.

This was our first heavy project without a more knowledgeable GC as our partner.

This happened almost a year ago and I have not been able to reactivate my personal accounts.

This property showcases strategic planning and flexibility within my investment portfolio.

If so, how do I get around this or at least make it to where only the rental income from the property is taxable locally? 

What made you interested in investing in this type of deal?