So I reached out to him saying that I'd rather give it for full transparency and to prevent something coming back and nipping me in the butt..

@Andrew Hamlett what is the tax issue and why is it preventing you from starting rehab now?

It prevents the Ill try to sell it off MLS so there is no buyers agent commission business structure.

The filing of a lis pendens notice about the pending lawsuit may even prevent other owners from being able to sell units in the building, which may get them on her side too, putting pressure on the Association to take corrective action. 

Classifying as owners draw will prevent it being accidentally deducted as a biz expense.

Have you done anything to prevent this since you aren't experiencing the same issues?

I would like to hear what the exact dangers are and if there are things you can do to prevent it.

The only other way around this is a 1031 exchange which doesn’t actually prevent the seller from paying them, it only delays when they get paid.

The city has tagged both units as uninhabitable, but allows entry to retrieve belongings (it has heavy damage but is not in danger of falling down).To add to the saga, their credit is far worse than it was when we placed them in our unit due to the husband having chronic back issues that have prevented him from doing his job full time. 

The key is preventing shorter stays from booking, so that your have long gaps of availability in your booking calendar.