Ideally, I'd like the option for us to disproportionately distribute expenses and associated deprecation or tax deductions.

You may have some deductions that could mitigate the taxes if you are buying income producing property.

It sounds silly, its ridiculous, but they say they can't take on that risk so it is what it is.How about this as an immediate solution - refer the buyer, ie you and your spouse, to another agent outside your firm for a standard referral fee (25% or so of the commission) to "represent" you.

Also, what is the "standard" price for a home that you are living in.

The property that we are looking at is onsite managed and fees deducted from rent, owner paid the balance.  

There is a limited and standard.

If there is a claim does the owner submit it and I pay the deductible?

In Atlanta, you're required to attend a briefing/meeting, then complete the application and provide requested info about the property, then they schedule the inspection and approve or reject the application per the standards.

Should I treat these properties like I would a standard flip or should I use more durable, yet less attractive finishes for the property since there's no guarantee the tenant will buy?

Only thing I would say is expect to pay 20% down since the property you are looking to purchase will not be owner occupied and 20% is typically the standard for investors.