@Ryan Daulton,You don't have to buy a house in SDIRA without a loan; you can easily get a loan, but it must be non-recourse.

Yes, just like you claim depreciation on the use of your property, any company including an insurance company claim depreciation when they pay for your damage.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

We approached the existing lender for a loan assumption.

Furthermore you can vastly increase your returns through leverage using a non-recourse loan but that will definitely trigger UBIT but again the numbers can still make a lot of sense. 

One of the LP just emailed me and said they are raising 65k to enlist help from this company.

And I've heard good things about @Priti Donnelly's company, so not trying to undermine them. 

That first deal after a break can feel like a big leap, but it sounds like a great opportunity.On financing, seller financing, private lenders, or portfolio loans from local banks could be worth exploring if you want alternatives to hard money.Excited to see how this deal goes for you.

We do have a property management company and even with our experience with LTR's, just no way we could effectively manage this home without local property management. 

Honestly looking at your situation I'm not sure I would recommend you do the taxes yourself,  change of accounting method (F 3115) isn't easy for someone that hadn't done them before these online software companies make things seem easier than what they are, they are good for less complex situations.