If the seller has no more problems(loss of motivation) for you solve SOMETIMES it's best to agree to disagree.  

No vacancy loss for over 5 years unless we had a eviction.. 

Tax, fees, loss of interest income.  

A loan officer should use your Schedule E of your tax return and take your Net Income or Loss and add back to this number the following deductions: Mortgage Interest, Insurance, Taxes, HOA payments, Depreciation, and any major one-time event expenses.

The contract could also say the LLC would cover a member's loss if one property had a bad year.

Further, I feel this law is very unfortunate and really a lose-lose for everyone, because the loss of (especially small scale) property managers' ability to use discretion in accepting applications will absolutely result in application criteria being raised across the board!

If they sell it to you for a loss then you sell it = capital gains for you againWas the house a rental when you went ahead and renovated it? 

Between your cost to buy it, and your expenses to buy/sell it you should be at a net zero gain or loss is my guess. 

If the depreciation recapture is $200K and there is an additional long term capital gain of $300K, could $150K of carry forward capital loss be used to offset depreciation recapture and a partial 1031 exchange be made into a new property purchased for $650K without incurring a tax liability?

As a current/prospective owner under contract to buy, you might be allowed to see the annual budget and profit and loss statement, but the board is not required to show you bank account/ invoices/ etc.