It's still dangerous D class property.

This is why it is dangerous if you don't know what you don't know....

I'm assuming whether he sells or not he isn't working a short sale with the bank or in danger of foreclosure.Also you seem to be making a fundamental error in tax calculations.  

Being good at SEO in today's world seems to be an extremely dangerous skill to have (A good way).

@Michael Plaks”can” and “should” is an important distinction here.After 5 years the adjustment on IRS Form 3115 will likely elimate the tax benefit of accelerated depreciation from cost segregation and expense of the Cost Segregation Study on a property like this.

It's a whole different animal than traditional RE investing, and could be really dangerous if you do not know what you're doing. 

This WY holding LLC also hold my non dangerous assets (brokerage account, bank accounts, etc...).The WY holding LLC is managed by a C-corp, that is also 1% member of the WY LLC.

If you don't fall into those categories, then I would not recommend you take out gap funds.If you are doing it because you have no money to fund the down payment, then this is very dangerous.

The market is still red hot, and those without systems in place where deals are brought to them are at a distinct disadvantage.

Dangerous, but they need to work but contracts are paying so low they aren't able to afford housing.