These are the things missing from your question- which I think we need to know to help you frame your mindset.  

Including the upgrades will mean that I now will be paying for them long term through my loan correct or am I missing something?

Which I think is pretty accurate looking at the past expenses from my other rental properties.I figure if I shoot for 20% if I miss my numbers and it ends up being 12 or 15 I'm still happy.

Is there anything I'm missing here?

You could have made your same sell argument last year and missed out on that $30k.

Unfortunately if you miss that notice, you could be automatically committed to another year.Lastly, there is information your PM will owe you after you separate. 

It really would be best it seems to get some professional CPA advice to clarify if any deductions were missed and to be clear on your full tax situation from someone who's familiar with real estate investing, as well as taking a closer look at what was (from your records) an ordinary repair/expense vs a capital improvement.

But that question misses the mark;  how to use any tool to target deals (today)?

Am I missing something here regarding this partnership idea?

(Not counting the missed rent, so really you still lose by selling.)It’s not for everyone or everyone would be doing it.