@Eamonn McElroy with all respect, your answer confuses me further. its either passive or not.If its not, its trade or business income.   

I respect your opinions.

Appreciate any assistance here because our respective accountants disagree and the partner's taxes were already filed. 

In this respect, it's high time that some of the many disgruntled people who have bought into their deals swallow their pride and speak up so that others don't make the same mistake they did.8.

You can lookup here: https://www.knowyouroptions.co... and https://myhome.freddiemac.com/...If the loans are backed by either of these, you may need to reference their servicing guides to explain to Chase that they are required to allow you to transfer the property to an LLC per the terms of the respective servicing guide.  

Respectfully, Frank 

Also, in my experience, some tenants are willing to spend some more money in rent for a higher perceived quality than a competitive available rental, and/or may treat the property better with more respect, and/or may have a longer tenancy, or the property may rent quicker.So, the previous post’s comment, is incomplete and/or lacking some other considerations.

After you hear back from the city, you can then make your case with respect to the public interest in releasing this information, if necessary.

Will the next buyer make the community safer and a place that shows respect for those living there.

I would not be eligible for a 1031 exchange, and when looking at refinance rates on 3% and 5.5% rates respectively, the numbers would not make sense to keep the properties and scale.