Make sure you waterproof correctly with a liquid membrane or sheet membrane at the tub and showers. 

I don't see any problem calling a sale price the fair market value under its definition, when investors think they got a heck of a deal, it's usually still at FMV.Many plan administrators don't want real estate because it is not a liquid asset and accounting requires valuations, annually, sounds like they are trying to ease that burden, not complicate it.

HELOC is a inexpensive way and quick to obtain liquid funding for purchases.

@Randy @Randy E. , first I made sure the guy didn't take any of the remaining stump out before I figured out what to do.

The (M)IRR is also not that impressive (less than 3.5%).When you factor in your closing costs (probably $16 - $20K), the price you are paying for the net income (essentially the Price to Earnings (P/E) of the property is around 5.0 - 5.25.  

@Carolina E. :-) Thank you very much!

Real estate investing is a side business, no LLC or partners outside spouse and myself.  2015 tax reported >$20K income on schedule E.  

Like @Carolina E.

So if you are investing in real estate and getting less than 5% then you should put your money into something more liquid that will get a better return.

They just want to see that you have liquid assets.