EMD is being returned.

If your goal is appreciation, you'll find markets that have very little cash flow (if any), and you won't realize your return until much later down the road when cash flow catches up or you sell the property.There are probably thousands of markets to invest in.

Looking for any creative input on how something like this could be structured.Taking part of the purchase price of real estate as a charitable donation and using said deduction to lower your taxes is tantamount to sending a cover letter to the IRS with your return requesting an audit.  

What is the most important factors when considering passive (or even non-passive) real estate opportunities?

Send them a written notice of non-renewal, following your local laws about how much notice you need to give.

That way they keep their licenses and ratings.I don't see much of a difference really.Don't keep them out as they will get increasingly suspicious and they might pull your permit for non-compliance.

Leftover funds not reinvested are taxable as "boot."

These are not taxable events.

You are investing for return on capital. 

Hi- I just got a notice of non-renewal from State Farm insurance for my 6 unit apt complex in Long Beach.