It is not cash flowing and in fact I will be losing ~3k/month in year 1.

In most municipalities approvals have a few year shelf life and in the event new regulations or new zoning bills are passed you could lose the benefit of the in place zoning/development procedures.

It’s like asking someone how much weight are they losing by getting better sleep.

Feel like we shouldn't be losing in property nowadays. 

Number of Major Employers (To try and understand if the local economy is resistant to losing a big employer, or if that would crush the economy)8.

Now people are justifying poor decisions on how important equity is, even though they are losing money. 

Are there any strategies I could use to still claim the depreciation, or any way that the transaction could be structured such that I don't lose on that tax benefit?

After the inspection date I believe you are obligated to purchase the property. ( Or could lose your EM ).Im sure the 21 days is totally sufficient if the property is a WINNER.

For example, you may project that each property will turn over every 24 months and lose 1.5 months of rent for a vacancy or additional maintenance.

When they have a little extra money, they invest in things that don’t lose value right away.