Also, appreciation is somewhat of a gamble.

Like in gambling, the house always wins over time.

I've chosen not to borrow against my free and clears but may change my mind if opportunities started popping up. 

Provide more financial details and you may find our advice is entirely different than your chosen path. 

"force" was probably an ill-chosen word.

By gutting it down to the studs and reworking the floorplan of the units to be more efficient and cohesive we were able to add tremendous value along w/ the finishes that were chosen for mass appeal and longevity.

Irrespective of the election chosen, the business DOES file an informational return, but any gains or losses flow through to the owner and (if profitable) taxes are paid at the owners current tax rate.  

Appreciation is a gamble whereas cash flow helps with later financing (improving your income numbers) and is more of a guarantee even if there's really no such thing.

@Brian PowellI do not know why you would take such a gamble. 

Justin gave some very viable options and I would agree that option one should be chosen each time.