However, I don't know if you'll win because insurance paid for the damages and you haven't really suffered any loss.

I’m not a fan because if the regulations prohibit it in the future your going to be stuck at a loss.  

If they are for services provided by the property manager like replacing a key or running a credit report, or a fee that covers a loss like a dishonored check fee, I can understand it going to the property manager.  

This was a pretty big rehab project and took a few months to complete - however, with a $321,000 purchase price, this house is now worth $485,000 and I was able to recover a majority of the cash I put into the deal as well as go from 5% down payment to 20% equity all while owning a fresh new house!

When you have the conversation - Have a discussion to see what the tax would be on an outright sale.You may have suspended passive losses that would eat up most of your gain.If the property was previously a personal residence, there may be some exclusion.If you do have a gain upon sale, have a conversation to see what options(if any) you have of deferring the gain and what the steps would be.

I know nothing about AL, but I doubt you will be able to recover cost of your money.   

Also, good investor insurance providers will also offer a loss of rents rider at no additional charge.

On the one hand you could buy a turn key duplex or tri plex in Cleveland that cash flows decently, or on the other side of the spectrum you could MOVE to Cleveland, house hack a distressed 4 plex using FHA with 3.5% down (~7k), rehab this (~20k), then refinance out in a year using a local credit union to recover all of your money, all while BRRRR'ing another single fam house, then repeating the following year, to accumulate 15-20 units in a few short years, with the plan being to expand into mid sized multi fam vs syndication after that.

Account Closed Back in my lawyer days, I helped a nonprofit try to recover $3 million "borrowed" and lost by a former CFO who had a sure-fire method of making a killing through options. 

We root for each other and learn from our wins, losses, etc.