My hunt for a right HML so far I've found one who wants to see 6 months of reserves and one who wants to see only 3 months but they both require a property asking no less than $150k.

You always want cash reserve if anything were to happen, such as the busted pipes.If you do decide to pass, there will always be more deals out there.

I will have cash reserves if rent isn't made. 

You should also keep a cash reserve just in case an expensive repair comes up. 

After the Oct 15 deadline, when I have more time, I will double-check my preliminary conclusion and, if confirmed, will reach out to the IRS counsels to fight their dangerous error.For my fellow tax pros: let me know if you're interested in this fight.

The sale has been confirmed and the property is in my name.   

If you are a REP and therefore interested in this subject, there is a high likelihood we will be doing a cost segregation but always reserve the rights as managers to make the call in the end in the best interests of all investors.Assuming an LP is not a "real estate professional" what is the advantage to the cost segregation to that investor?

As well, as @Grant Thompson mentioned, I'd double check comps to confirm that ARV. 

Second opinion makes it easier to sell individual units later.There is a third option but that usually reserved for much larger portfolios where you buy the llc including any existing mortgages.

You'll either trade some yield for a longer term lease with a stronger tenant, or build in more reserves for a weaker tenant and shorter term lease.