But only use this in very specific circumstances because investors typically don’t like catch-ups, and I don’t blame them.  

So you should be fine.Sincerely,ABC Accountant"Now I am 99% sure they don't qualify for the 'partial exclusion of gain' exception AS IT WAS INTENDED (They plan to repurchase in the same town, no health issues or other extenuating circumstances I'm aware of)....that "ABC" is so confident in - or seems to think is a flat rule that broadly applies to everyone.

The fact that the damage is throughout the home and the owner has done nothing shows neglect and a serious lack of concern on the part of the investor. 

Ive worked with borrowers even in the sub 6 range, however each deal, borrower and circumstance is different  

I have given special consideration to a tenant based on her financial circumstances.

I've never thought about it this way, or have heard of doing something at close of escrow... what kind of circumstances would make this possible?

I know I will never be happy working 40 hours a week behind a desk to propel someone else's dream while neglecting mine, and that is part of my why. 

You have to think about the tenants being able to afford your property, no matter the circumstance they are in.

What constitutes a trade or business under Sec 162 case law is not limited to what constitutes a trade or business subject to SE taxes under Sec 1402.Rentals are only subject to SE taxes in very limited circumstances. 

All of the material I come across is about buying, selling, flipping, or etc and I can't really find anything for my unique circumstance.