First off, if you have passive activity losses carryovers (unused losses from previous years) those losses wil be recognized to the extent of your passive income (gain) from the sale.

I have seen instances where a 1031 exchange was not required such as1) The overall gain from the sale of the investment property was very small or even negative2) The taxpayer had enough passive loss carryforwards to offset the gain.A 1031 exchange is a very powerful tool put it has to make sense before going forward.

I have another rental property that has suspended Passive Activity loss (that I decided to hold), can I use one property PAL to offset gain on sale for another? 

Although they can't leverage the losses to offset non-passive income, like someone with REPs, there's still the opportunity to use the Suspended Passive Activity Losses to offset cap gains on sale or offset other passive income.

I'm on the hunt for a brokerage that allows property management and real estate sales. 

For auctions or REO properties, contact the bank or auction house managing the sale.

Why do you want this property over another brownstone that would be for sale?

Most likely insurance is going to want the whole house not a shared portion of it.

Out of curisosity, are you considering utility reimbursement portion as "Owner making money?" 

After years in the highly active BRRRR, sales, and rehab realms as an RE broker, I quite enjoy throwing on my boots and riding a zero turn mower, taking a Jon Boat out on our pond, or cutting up a downed tree for firewood.