When I read your initial post, I incorrectly arrived at the conclusion you were new to real estate investing.

I wouldn't put much energy in correcting them. 

Usually I would say yes, but the circumstances of the tax lien and the co-signor's efforts to redeem would guide my decision.  

Our decision was based on a few things: we were undertaking an extensive rehab, we had little experience finding and screening sub cons, and we did not want the time crunch of high interest beating down on us.

However  there is a hidden gem in rev proc 2008-16 that was missed earlier and that is that if you adhere to it prescriptively you really need only hold the property as rental for 13 months not 24 months as was suggested.your accountant is relying on one of the specific wordings from a tax court decision that two tax years is appropriate.  

Before making the decision to purchase the property, I was told that they had a lease signed for $1,100/month (I purchased the house for $100K).

Hello BP Nation, Two friends/co-workers and I have finally made the decision to get into real estate investing.

Hello Jared, congrats on your decision.

Look at your investments objectively and make decisions accordingly.

What is mainly holding me back from making a decision is that everything in all the units is electric.