Even though this is a short sale, this is still a bank involved, as they have reviewed the HUD and other documents at closing.  

Always first look back to what your lease says, because that's your legal document.

It’s is sometime better to start earlier just to document for the long term cap gain treatment. 

For other purposes you withdraw it and then use software to document what you did. 

You have it or you don´t.The good news was the horse boarding business should net between $1,600-$1,900 a month.

This is taken directly from their guidelines: "Method for Calculating the IncomeThe method for calculating rental income (or loss) for qualifying purposes is dependent upon the documentation that is being used.Federal Income Tax Returns, Schedule E.

I quickly searched recent news, but have only found articles a few weeks old, and even those state that the threshold was raised to $10k.

You need to read the lease plus your HUD documents and see what was transfered to you on sale and what is in the lease. 

An appraisal is the only thing you should ever pay for before you close the loan.4) After the appraisal comes back you will get a document that outlines the amount to be borrowed and all fees that will be relating to the loan (I would suggest to ask for an example of this document when you are searching for an HML so you will know what fees are going to show up).5) Close the loan with title company, typically chosen by the seller 6) Begin work and make draws on any repair balance.

An appraisal is the only thing you should ever pay for before you close the loan.4) After the appraisal comes back you will get a document that outlines the amount to be borrowed and all fees that will be relating to the loan (I would suggest to ask for an example of this document when you are searching for an HML so you will know what fees are going to show up).5) Close the loan with title company, typically chosen by the seller 6) Begin work and make draws on any repair balance.