Were there any "intangible" value created through this build that wouldn't be reflected in the numbers? 

Reading or responding to this post does not create a client-accountant relationship or any other professional relationship.

The FHA rules/regs (in particular the FHA self-sufficiency test) are applied the same across all markets, and I know for a fact that in rural communities across the country, and big cities that are not particularly desirable places to live, it's not a deal-breaker, I am not commenting on those areas. 

I have found personally some city rules for renting are simple in the suburbs and some people are specifically seeking these areas for one reason or another.

Unless new companies move into town and create replacement jobs, all that will remain are lower-paying service sector jobs.

So, by transferring income from a rental schedule E to a business schedule C you're creating a significant extra tax.

This has created a "shared driveway" with the neighbor making an ugly curb appeal, not to mention cutting their lot in half.

And the orginal buyers not only paid the 100k for memberships but 100 to 300k for the lots on top of it.So in my mind those that buoght long ago for not much.. probably just want out of fixed debt those that paid top of market within 6 months of the buidling failure and new rules coming in are going to take a bath..

The rule is based on if it's "within the primary dwelling unit" of the taxpayer or not. 

They seem to either go one way or another, NO investors with strict HOA rules, or full force on investors.