The misunderstanding came because GP Sponsor A who is HQd in CA issued me a K-1 for a property that is based in GA with their business mailing address in CA showing on the K-1 as opposed to where the property is in GA, and the LLC was opened/registered in GA.

If you don't want to tie it up, then you don't buy the property, unless I am misunderstanding something.Beyond that, you are getting a 15% ROI on your improvements.  

Clarify this with an accountant for sure because I’d hate for your parent’s wishes to be missed simply because of a misunderstanding there.As far as negative cashflow vs positive . . .

Or maybe I'm just misunderstanding something. 

You are responsible for the payment of $1,600 needed for the preparation of your Loan Agreement contract/paperwork and for the binding of your loan documents.IF THERE SHOULD BE ANY MISUNDERSTANDING, BELOW ARE SOME BASIC REASONS WHY THE FEE IS TO BE MADE.Over the years, loan fees were deducted from the principle so as to favor borrowers and to secure their interest.

Did I misunderstand?

(A RI Realtor will know what you mean)I have this form filled out for any and all multi units, so that there are NO misunderstandings regarding the security deposits (or lack of security deposits), and so you’re on the same page with the tenants regarding all of the rental terms once you close on the property!

It would seem to be a shame to ruin your relationship with him and a marriage to boot for a total misunderstanding.

This is the only logical conclusion I can draw from your line of reasoning, but if I'm misunderstanding you please clarify. 

Before you close you should get a loan disclosure or CD outlining cost associated and if stuff doesn’t line up let them know.I know that’s a lot of info- since I’m currently going through it right now and have dealt with a lot of interesting scenarios, feel free to message me and i will be able to better understand where the misunderstanding is occurring cheers!