So let's try to break this down for you.In a nutshell, depreciation recapture happens when you sell an investment property for more than its adjusted basis (the original cost minus accumulated depreciation).

Unless you are a child and moving into the property, it will get a property tax adjustment.  

A fair amount to agree upon although I foresee a few major looming modifiers that I predict have a high degree of likelihood in happening that have strong influence in adjusting markets. - The correlation of erosion to buyers purchasing power in monthly mortgage payment (increased property tax's, property insurance, HOA fee's) is a factor I see counter acting a slowly declining interest rate, making for a ~net-0 market activity environment on YOY volume metric. - Leading into home stretch of POTUS election cycle, the above may be a strong catalyst to press the deployment of a stimulus offering in form of home buyer empowerment

We do have access to a HELOC on the property which we leveraged to purchase our current primary residence (balance borrowed has been fully repaid at this point) but we would rather not pull that lever to roll into a new property given current interest rates and the adjustable nature of the HELOC. 

That is something that will take a little adjusting to - that respect!  

The market is currently experiencing a period of adjustment, with a slight increase in apartment vacancy rates to 7.3% in Q4 2023.

Your gain will be Sales price less sales expenses(Commissions, closing costs) less Adjusted basis.Your Adjusted basis will be Purchase Price plus Improvements less accumulated depreciation.Depending on how you categorized the improvements / furnishings will determine how you will calculate your gain.If you already took depreciation / expenses for the furnishings, you can't also count it towards basis to reduce your gain.Best of luck.

I could have clarified that I was considering the risk adjusted return before comparing it to the S&P.

It is very common to see a portfolio loan with a higher rate, a shorter term, and maybe even be an adjustable rate – and sometimes all 3 of those.

They would adjust the ALTA so your commission appears as a credit on your side as the buyer.If part of your commission goes to your brokerage, you can let them know your split, and they should be able to send a check directly to the brokerage for their portion.