In this circumstance, is it best to notify the city about the bedroom/bathroom additions that were made by the previous owner? 

I can't imagine someone with 300 tax returns if they are not in the Bill Gates league.putting properties into LLCs/trusts, whether or not they file separate tax returns, usually does not change anything for taxes: same deductions (including depreciation) and same amount of taxesThere are many possible exceptions and complications, which is why we should seek individualized advice and not try to copy what someone else is doing.

Now I got it out of my system, cancel most activities on this list except of two, but double down and focus: #1 my brokerage business (grow my team, no point in brokers license with KW) and #2 keep growing our portfolio at current pace. 

Notwithstanding certain circumstances like moving for a job, etc.  

@Brint DeVillingI would say you should definitely let Beth know about this offer on another property as your Realtors need to know your financial circumstances to move forward.  

We do know how to focus on the customer experience and we do have the ability to step in and make sure an investor is having the experience they expect when unforeseen circumstances hit.  

We engaged with a PM company 3 months ago to rent out our SFH, but have found them exceptionally unresponsive to communication and lacking any updates on what they are doing to market the property.. very frustrated with delayed and super vague answers on even if we are getting any showings...

Essentially this would be no different than a bank closing with the exception it will be much faster.

What value and service are you providing except to yourself?

The previous owners have basically remodeled the home except for a few finishing touches (kitchen remodel and bath tub still need to be put in) and the HVAC system (it has not be put in (they have all of the materials, just haven’t put it in)).