And you are not using the correct terms which is understandable but makes it hard for us to respond.

In fact, the USTC has found in favor of the IRS when a taxpayer did not apply the law correctly (what everyone deems the loophole).

Correct.

You are correct in that we are using them as our “boots on the ground” , GM of sorts.  

We need a significant retail price correction as a catalyst to change that, in WC at least. 

If you decide they're not a good fit, then vacate them and release with new tenants that you actually correctly screen and lease to. 

At a bare bones minimum, the letter confirms the start/end dates of the lease, monthly rent, paid-through date, absence of any prepaid rent other than the current month, and security deposit amount.Better, it will include statements there are no unresolved claims or disputes or repair issues with the current landlord, and no verbal or written side agreements.Better yet, it will include a copy of the tenant's lease, and a confirmation the lease is a true and correct copy with no amendments.

In the same agreement we see that this protection period is only for 30 days- so that means on day 31 we can sell to a buyer that saw the property assuming we have a new agent/listing, correct?

Books are important to maintain because it keeps track of the performance of the partnership not only for one year but over several years.Partners normally have the right to inspect the books.Will the accountant you work with either maintain the books for you or help you make sure its done correctly?

One thought if Scottsdale still owned the notes was, see if we can buy them at a discount and make a spread on re-selling them, but having seen that interview, you're probably correct that they had already sold them on anyways, keeping that spread themselves (which never got back to investors!