Zero Cash Flow ZCF Exit strategy and/or ZCF DST Funds

[Isaac S.]

I was recently exposed to the use of Zero Cash Flow DST offerings for the same reason you would invest in an individual ZCF asset....

for me, I first considered them for the depreciation that would help shelter cash flow on another asset that is fully depreciated. But i was soon discouraged as I found out that prepayment or refinance was heavily penalized, so when the deal started to generate phantom income(year 10-12), that is taxable, you would be on the hook for even more taxes and not have an easy exit. At least that's my understanding. Am i wrong?

my other questions: how do the DST sponsors exit out of the ZCF Properties or do they at all? Is there any chance of appreciation? Will you get your initial investment back out at exit?

I like the idea of using some part of my portfolio as a highly leveraged path to enough depreciation to shelter my income and give me a higher cash flow, but, I am not sure if i am missing something.