Unfortunately, it was on the day of closing that I saw the HUD-1 and I did not have the 100% knowledge nor the confidence to tell the closing company at the table that they need to fix this or no deal.

The joints dont look uniform and although I cant tell from pics, I highly doubt the tile are all level.

The following table shows some of the ADS recovery periods. ...Residential rental property 40 years"Is there something that would prevent us from choosing 40 year depreciation on a new property, if we wanted to reduce the "passive loss carryover"?

This house has a well so I think it just has a high water table.

Were there are deals always on the table.

Best to demonstrate two things, your knowledge and your ability to get the deal to the closing table.

Our Georgia / Atlanta based real estate company helps under water owners, owners with some equity but not enough to complete a traditional sale without bringing cash to the table.

However, if there is any issue/vacancy you'd be in the same position as the "originator" and have the same work had you found the home and buyer yourself with more profit on the table.

However, since my wife qualifies to claim status as a "qualified real estate professional" I'm trying to determine if different strategy  might also be on the table. 

If so, your conforming residential loans are on the table..