If it is a normal 70/30 leveraged property, you may end up subject to tax on 70% of your returns anyways - so cost benefit, is that 30% tax free portion worth the high tax rates paid and additional filing fees to get tax free treatment on the 30%?

I can’t find an add on solution that handles this either.  

Assuming this is proper in your situation, with treatment of a tax partnership, reporting would be as such with a Form 1065 filed, claiming all rental income and expenses, and then issuance of a K-1. 

Here are a few ways technology is revolutionizing the real estate sector:Virtual Reality (VR) and Augmented Reality (AR): VR and AR technologies allow potential buyers to tour properties remotely, providing a realistic sense of the space without the need for physical visits.Blockchain and Real Estate Transactions: Blockchain technology offers a secure, transparent way to conduct real estate transactions, reducing fraud and speeding up the process.Property Management Software: Modern property management solutions automate many aspects of property management, from tenant screening to rent collection, making it easier and more efficient to manage rental properties.Embracing Sustainability in Real EstateSustainability is no longer just a buzzword; it's a critical consideration for the real estate sector.

You might also want to read the book the 16% solution.   

Ultimately, finding a solution that respects everyone's interests and perspectives is key to maintaining a positive relationship with your parents.

@Connor Bell I believe the 16% solution is a book about tax liens. 

Rather than force your solution or product on someone and beat them down (your original approach), find the people who need it and allow the sales to come to you.

My solution is to use my eviction attorney for tenancy-related questions and my real estate attorney for anything involving written contracts.

Here are some solutions to your questions:Anticipated Upgrades as Renovation Costs: Yes, you can consider the anticipated upgrades as renovation costs in your calculations.