Sometimes title/escrow do too for property tax pro-rations, I've never really taken the time to find the patterns.

My concern is about the capital gains and the fact that I can't get a straight answer about the pro-ration.

You appear to know what you are doing, know your market, and I hope can rationally sell/negotiate the transaction.

I’m trying to rationalize the lease buyout by saying it’s Rehab Costs in my worksheet.

You're trying to rationalize a bad deal into a good one...and not very well. 

I very much appreciate your input and tend to agree rationally but a small part of me feels bad about springing it on them. 

I own a home in California that I will be renting very soon and was attempting to rationalize the pros or cons of allowing cultivation (according to local state laws) of marijuana.

I currently rent a place for $2700 instead of buying the same place for $800k, and my rational was the back of the napkin math stated the mortgage payment - principal was higher than rent, and continues to be.I did not consider appreciation, but I guess one shouldn't count on it. 

At first, managing 1 property wouldnt be a full second job so i'm confident i could balance You can rationalize it all you want, you're losing money. 

So the risk/reward ration is different compared to residential.