If you’re working with a tax professional ask them to do a tax projection for you with one scenario assuming you sell all 5 today and the other assuming you only sold 2 today.With the tax projection you’ll now have a good estimate of what your tax situation will look like and can make decision based on that.Maybe you can consider selling your portfolio and doing an installment sale, this won’t help on the depreciation recapture but it would help spread the gain over multiple years.Each strategy has pros and cons, if you want to rip the bandaid off an be done cold turkey (or warm turkey if you’re into that) there most likely will be a large tax hit but less headache holding them longer.

In the scenario I observed, it was the closing attorney getting title insurance where the hard money lender wanted 115% coverage which inflated the cost.

There's a home owners association and condo association that pretty much manage and take care of everything on the outside of the building and common areas.

Is this common for these types of loans?

On the one hand, the mentor courses / boot camps / common advice (including many here on BP) is to just set up an LLC but when I've discussed it with professionals, they argue against it.

This is basically the exact scenario that DSCR loans are designed for. 

We are considering sun west mortgage but open to other suggestions.3% down with Conventional is possible in some scenarios.

This is not very common, but a possible risk.And lastly, I am not an attorney, so confirm all of this with a local real estate attorney as part of your due diligence on property.

So, your qualifications might need to be stronger when dealing with institutional funds compared to a more casual, private lending scenario.

This is the common issue with most TICs is that all TIC owners end up signing loans with personal guarantees.