It is pretty cool that you were able to get that property after such a long period of time from the first time that you found it. 

I read through the regulation a few times and still had a few questions around the deferral period.

You will see periods of 10 plus years where nothing happened to values and some during that span sold for a loss.

Everything from lack of patients to work style to damage to your reputation can happen in a short period of time and cost you far more in the long run than a few thousand dollars for an emergency repair.

@Dean SmithIn determining whether short term real estate rental income is treated as business income, here are general considerations (of course you will want to review your specific situation with your tax advisor): The average period of customer use is 7 days or less.The average period of customer use is 30 days or less and significant personal services are provided with the rental.

I use more comprehensive calculations that give me a total cost as well as total profits.I anticipate ALL profits and Expenses over a 10 year holding period and then I pretend to sell the Investment.

Most Lenders are at a 6 month seasoning period. 

The lender will look at how the ground lease is constructed and the value of it with a tenant guarantee for the length of the payments.A ground lease with 25 years primary term and annual rental increases can be seen as more valuable then a ground lease of 25 years but 5 or 10 years primary then option periods.

I selected this structure after reading about it BP and Paper Source, and also being mentioned by multiple "gurus", and since it made sense to me, It seemed as the best way to structure the ownership of my Notes.Having the CFD in the name of a trust with beneficiary being a LLC, allows for a more efficient process to take back the property if Borrower is unwilling to correct the issue (the 20% rule not withstanding).

If you scan multifamily listings in Oakland (which I do periodically) I'm always struck by a) deferred maintenance, and b) tenants who are stubbornly stuck in place and whose units are really run down and living in bad conditions.