For each partnership LLC, a schedule K-1 will provide the net LLC income (loss) that passes through to your personal income tax return.  

You could cashflow for 4 years, but if you sell afterward and all comps in your same building haven't sold above 40k, you gain cashflow for those years minus the 22k loss you would take to sell the unit.

Condition of the property is always a major factor and carries significant weight.

During our rehab we converted the house back to having a garage, but we were screwed whether we did this or not. at $185/sqft, 300sq/ft is around $55,000 in value loss.

Also consider retaining an attorney to draft a lease that you can reuse.I am very sympathetic to your troubles and your loss, but I also believe you bear some of the responsibility in not protecting yourself.

With a 5% vacancy loss that's $68,536.8 (and I usually underwrite to 90% to be safe), 50% expenses (general rule of thumb) would give you $34,268.40.

I've heard that good contractors are worth their weight in gold, I'd appreciate a suggestion!

  ( I am buying this for profit or loss and I am a principal in the transaction and a licensed agent in this state)  simple and never once had a seller balk at it.but any way each his own....

Most the time, the bank buys them back and puts them back on market within a few weeks and will sell them for a loss sometimes. 

A person walking on the roof will add a significant amount of weight to one small spot, increasing the risk of structural failure and personal injury.