I guess the only way that you would be exposed is if you sold prior to the end of the term.But this is a solid strategy.

Seems it has to be in place prior to closing, so I considered it an entrance cost...any opinions?

Nevertheless, in the case of a CoC waterfall you CAN hit the hurdles during the hold period and collect promotes prior to the sale. 

I'm thinking write two offers, one realistic, and one where the Seller raises the rents prior to the close of escrow.

In reporting the complete disposition of a passive activity, its current-year income or loss is combined with prior-year suspended losses for the activity.

LENDER may, from time to time, extend the time for payment or accept partial payments of or additional security for balances due or to become due from the BORROWER without or prior to, such notice to the GUARANTOR.

You want to post on Craigs List every 48 hours and be sure to delete your old post prior to re-posting.

Call the TWO prior landlords.

Of course, this would all depend on if your DTI to qualify for your next purchase can tolerate maxing out your LTV.Side note on your next appraisal: when you have your property appraised, I always find that it helps to do some legwork prior to your appraisal and dig up very strong comps for them to use as well as itemize the list of improvements you've made to really sell the increase in value.

The house appraised for $915K independently 4 months prior to sale.