His typical sale is probably for about $1,000,000 which is way more than I typically pay for my investment properties.

--------In Kansas, the waiting period for a successful bidder to receive a Sheriff's deed after a tax lien sale is usually around 90 days.

How much and what would I do with the gain on sale, and how does that help or hurt my strategy? 

While I'm not an accountant, CPA or attorney, I'm hard pressed to believe that if the mortgage is paid in full from the sales price the wife has to worry about getting a 1099.

The population is growing, there's tons of development opportunities, and a nice mix of industries - tech, healthcare, manufacturing, etc.

Secondly, would I have to pay that back in depreciation recapture upon sale?

In an ideal situation, you and your aunt would each pay back your fair share to your grandmother or each other. i.e. each of you share X% of your sale profits to your Grandma OR you and your aunt split the past expenses (taxes, other holding costs, renovation, expenses, etc.) with your grandmother and pay her back. 

Given the size of the transactions generally offered on crowdfunding sites, there aren’t enough secondary trades large enough to make the economics work systematically (besides the regulatory constraints) for Broker/Dealers to be incentivized to help LPs to redeem their positions via a sale/transfer to a new investor before the end of the investment period. 

But the other issues we've run into from lenders is 1) We're a Gc to where the company's income comes from selling our new construction builds - the bank *US BANK actually told us they couldn't count that income at all because they view the sale of homes as "inconsistent". 

Given these comps:NEW CONSTRUCTION1 being new construction For sale                                                                                             256 Lucerne Pl, Memphis, TN 38126https://www.realtor.com/realestateandhomes-detail/256-Lucerne-Pl_Memphis_TN_38126_M75318-15423?