If I can get my Lendingclub investment back without a loss, I will be happy. 

All your investment income and expenses will be reported on your partnership tax return and a Schedule K-1 will tell you how much of the partnership income (loss) to report on your personal 1040 (line 17).  

If you did everything right and retailed it, that number minus your repairs and acquisition will be your profit (or loss). 

I made an error in the beginning researching the going rates for rent and have been taking a loss every year for the past nine years.

Here are the two analyses: Initial Investment Purchase Price $89,000.00 Closing Costs $2,225.00 Renovation Costs(allegedly turn key) $3,000.00 Total Investment Costs $94,225.00 Financing Costs Down Payment (%) 20.00% Down Payment ($) $17,800.00 Mortgage Balance $71,200.00 Annual Interest Rate 4.00% Loan Term (months) 360 Total Invested Capital $23,025.00 Fixed Monthly Operating Expenses P&I $339.92 Financing Charges $0.00 Administration Fees $12.50 Property Taxes $197.08 Homeowners Insurance $111.86 HOA Fees $0.00 Fixed Monthly Total Costs $661.36 Variable Monthly Operating Expenses Property Management $157.50 Advertisements/Referrals $65.63 Vacancy & Collection Losses $131.25 Capital Expenditures Replacement Fund $50.00 General Maintenance Fund $50.00 Temporary Utilities $10.00 Pest Control (Optional) $0.00 Lawn Care (Optional) $0.00 Total Variable Expenses $464.38 Total Monthly Expenses $1,125.74 Annual Operating Expenses $13,508.86 Operating Income Monthly Market Rent $1,575.00 Annual Gross Revenue $18,900.00 Monthly Profit (or Loss) $449.26 Annual Net Profit (or Loss) $5,391.14I present to you such a thorough analysis in the attempt to make sure I'm not making any glaring mistakes!

Bear in mind that the intent of insurance is to bring you back to the place you were before the loss occurred.

Seeing that this appraised at 260k and you're looking to put in 22k extra to get to 282k...what kind of appreciation are you expecting in three years that would offset what is likely a monthly operating loss, as well as the costs to sell? 

My parents decided to sell and just cut their losses rather than fight the board and deal with them.

However, real estate prices tend to be a lot stickier than other asset classes because people don't want to take a loss on them and tend to hold out to at least break even. 

Most investors will have large losses they can carry forward for several years.