Not sure what their threshold is, but repairing and marketing the property is going to cost the IRS a good bit more than it would cost an investor (due to the red tape inherent in any government activity).

Some of my credentials (very briefly):Electrical Engineer from Lehigh UniversityLicensed Journeyman ElectricanPresident / CEO of CM Squared, Inc.

I am running into red tape everywhere I turn.

This sales analysis is used to determine total market value based on square footage, year built and other characteristics of the property.

Can you provide more detail on the property like age, square feet, furnace age, is it single or multifamily, etc?

Problem is, when we removed the old wood flooring (square blocks), there is leftover adhesive (cement?)

Notes go through a random audit for compliance, besides the red flags that pop up with loan servicing you will never know when or how they detect a transfer.

Doing unpermitted work is always a no-no and will be a huge red flag when you go to sell.

Escrow and Titleby Fidelity of Redding, CA.  

Especially if it is an older property (Maintenance costs, & cap ex, alone can through you into the red pretty fast if you don't have the cash flow and savings to cover things)  I think the loan pay down, tax benefits and appreciation are all great things, but cash flow is going to contribute some of the money for your next investment.