Issue is we have the JV partner and they would like to be part of the ownership if we long term hold.

@Kevin Luttrell oh, and I think the issue may be that since pretty much all accountants/preparers use a tax software, they follow whatever the software does.

Be advised, however, that we did NOT sue our former bank on the basis of discrimination but on issues related directly to their actions against us contrary to our loan agreement. 

When that happens there is NOTHING you can do in the short term to resolve those issues.

See what issues they may have and how you can solve it.

Intra-tenant issues can be more since they live so close to one another.

And is this an issue I should fix?

They used different strategies: house hack in CA, STR, buy off market, buy OOS, SFH, multi-units, buy large apartment complex with other investors, etc.Thoughts on 1031 exchange to DSTs to try be more passive (no more dealing with PM, renovations, repairs,  tenant issues) but I've heard the money is trapped for 2 to 5 years depending on the operator, still researching DSTs. 

However, I am having issues finding a good area with good growth at a good price. 

Also, if there are any potential issues with pollution such as inground tanks, you need to know that you own the cleanup as the property owner.