Can't give you legal advice but from a taxation perspective:There is no tax impact:  LLC vs LLP. 

Then subtract a percentage of arv you would be happy capturing after forced appreciation with the rehab and you should end up with a ballpark number of where your offer would need to be to make sense.

And they force me to fix the problems without sending me the report, and accept this tenant.

Certainly he's probably not going to want to spend his time going back to where he was forced out of a home he owned for 25 years during the housing crash.

Jobs can be lost, tenants can be hard to come by, tenants can get the government to provide them forbearance without forcing banks to do the same, etc... 

If you look back to 2007 builders and developers were forced to put new development projects on hold but they were still buying their land holdings while patiently waiting for the recovery.

There are changes that impact what is considered the lowest floor.  

After installing vinyl plank flooring on the 2nd floor, we realized that the included underlayment doesn't provide enough cushion and a lot of foot impact noise is heard down on the 1st floor.

@Rick Reeder I agree with @Cameron Tope I think this proposal will see significant push back and if it is adjusted then CPAs, attorneys, asset managers, and real estate investors will have to explore other avenues to delay or mitigate that tax impact.  

He would have to file in small claims to force you and he has no case with that old of a kitchen.