DSCR qualifies borrowers with rental income rather than personal income, so you don't need tax returns.

Joint tax return?  

If you are taking the tax write off, you are acknowledging you are paying the debt.

And you're getting tax benefits.So many of my first-time Colorado investors are afraid of looking stupid because they got a "bad deal."

(c) Do any of you have some specific market considerations I should take into account OR that I should be researching (high taxes, pertinent rent laws, etc.)?

I can save a fair bit on state tax and rent as I'm currently living in California. 

So, we bought the property 2 years ago, based on the valuation of the property considering income from 6 units.The sale deeds (from 2018- 3 sales) I could get from the City and the property tax statements (2023,2024) show that the property is zoned as 411 (apartments).

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?

It has cost many people including myself a lot of unnecessary money and still is because you deal with the tax portion of opening unnecessary LLCs recommended by supposed professionals.