The IRS wants something in writing: the appeals officer asked under what authority should the lien be considered in the distribution, then denied the appeal when my CPA suggested we compare it with the distribution amount if the property was sold and the note was called due.Other similar like-kind distribution examples would be helpful to.

We as a firm have investors working with us who have properties all over the US for example big and small.

I laughed at your casual use of the word, "sponsors," as though it is typical for investors to send their money off to heavily marketed investment schemes.

To give an example, just put a roof on a 1700sf house and it was 29 squares, and they wanted 15.2k for the job.

I think your biggest hurdle would be speed as these typically have seasoning requirements.

Show me 1 real life example. 

For example, I think there should be reciprocity for a PA resident who works in NYC to only pay PA income tax. 

Example of how my numbers looked: Purchase Price: $115,000 Renovation cost: $50,000, All in for $165,000.

He has owned it for two decades.For example; what if he was purchasing another multi family property or what if it was an STR investment? 

unless you get Agency Financing (fannie, Freddy), your loan will typically be 5 yr, at which point you will need to refi.