You can essentially argue that the property was indeed held for over a year (under personal use), and was used in rental activity at the time of sale. 

Alas, this resulted in the property manager being held to an impossible standard.My advice: be an active part of the underwriting process.

@Matt Pastier Hey Matt, it was smart that you held your ground and walked away after the 47k counter offer. 

I think scrap prices are down, so they may be holding on to metal waiting for prices to go up. 

HVAC must have been hawked, none there any more, plumbing that was metal was recycled too.So, roof $6,400, plumbing, $1,500, HVAC, waiting for estimate, but should be around $8k with duct work,  paint inside $2k, new cabinets, sink, facet, d/w, counter in kitchen maybe $15k, bathroom fixtures for 2 bathrooms $3k, flooring (labor ourselves) vinyl laminate $4k, 5 broken windows after leveling house $300, leveling house $8k total for all this : $48,200.Total cost for the purchase and fix is $115k. 

We see warping & some shape disfiguration up here with light gauge cheap Chinese vinyl siding especially if it butts up to metal facia or there is metal flashing under the vinyl.

Since the formula of cap rate is NOI/Cost, growth in income/rents formulaically means growth in cap rate (i.e. everything else held constant).

Im aware most are held at the courthouse steps, whats the dates those are held.

(Anecdotally, the typical response is likely to be "Oh, no issues for Illinois, except that Landlord must designate wither the security deposit will be held in an interest bearing account or a non-interest bearing account", or some other very minor comment.) 

They knew it was me, always gave me the stink eye, but I just held eye contact and they never did anything, eventually got kicked out by the landlord and had trashed the house.