Their taxes and insurance may have doubled and they can't afford the house any more.I think geographic is tough because there just isn't typically the turnover any more in most areas. 

Are there any Depreciation recapture or capital gain Tax dispositions that need to be resolved with the exiting member?

Its both asset protection , business planning as well working towards getting REPS status for tax purposes.

The other factor that's relevant for me is that my husband is a high end W-2 wage earner and we could greatly benefit from the potential tax benefits of actively managing the property. 

I have over a hundred rental units I own and operate in Utah everything from homes and condos to larger multifamily.Salt Lake County has higher property taxes and is basically built out already and Ogden even though you can find good opportunities in the long run it won't be able to compete with South Utah County or Eagle Mountain. 

You'll get pretty good depreciation when it comes time to do the taxes.

Instead of their cash sitting in a savings account, they decided it would be a better investment to earn 3% on their money instead of .03% in the bank.

A miscalculation can eat up your profits fast.Speed is Key – The longer you hold the property, the more you pay in interest, taxes, and utilities.

When I look at the equity and the 15% Capital gains tax bracket I would likely be in, I would avoid ~$24,000 in taxes if sold before Aug. 2025.- I am aware of my 1031 options should I want to sell and defer taxes beyond that 3-year date (and would need to continue to do so until death if I wanted to avoid those taxes instead of just defer them). - I believe the current rental situation I have is better than the property warrants.

The patent on the 30 year with taxes and insurance was 3900 or so.