Do people require it before signing the lease?

You'll find your ceiling where people snag your unit and are happy versus it sitting empty.  

Got this from the sponsor - Real estate gain is 1231 - but there will also be recapture of depreciation which is ordinary income.With a few unknowns before the actual k-1 is released, it's hard to make any concrete decisions but was just wondering if I should sell some long-term held stock at fidelity to offset the gains

People most successful in all aspects of real estate investing and the real estate BUSINESS, gain knowledge and experience n three areas: (1) real estate principles, (2) real estate law, and (3) real estate finance.  

Nor does it pay well for an agent to spend a lot of time with a buyer that has an agency agreement but chooses to sit on their laurels instead of actively pursuing a purchase.Most agents who are serious about helping people do not have time to spend with lackadaisical clients or people who refuse to sign a buyer's agreement.

Many people are only making $50k or so on $800k-$1M properties. 

It is easy for people to download fake W2s, ESA paperwork, etc, with a few mouse clicks and a credit card. 

They will substitute in their own sense of fairness knowing people are unlikely to appeal such a small issue.

This is another reason why I see 1M posts on hear about people wanting to transfer properties to their LLC because some guru they paid $5k told them too.

I think it's going to be location specific for sure; where I am very few people hang out in the house all day long as they are usually busy hitting the parks and attractions.