I am installing wireless, ten year lithium battery combo smoke and carbon monoxide alarms in my rentals. 

I do this work for large commercial building fire alarm and sprinkler system submittals.

After the cost segregation study was performed, this was the new asset allocation breakdown by useful life.Here are some examples of what types of assets are included in each of these asset classes.5 Year Useful LifeSpecialized equipmentCabinets and countersRefrigerators and microwavesSecurity alarm systems and telephone connectionsDecorative wall treatments, ceiling fans and flooring15 Year Useful LifeSidewalks, landscaping and asphalt pavingSignage and site lighting39 Year Useful LifeDoors, walls, roofing and windowsFlooring, drywall partitions and ceilingsEmergency lighting and restroom fixturesPlumbing, HVAC, and electrical distributionThe use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

should I move forward with this kind of transaction and does it sound alarming? 

This is alarming; it's the first time I've heard of it.Under what circumstances would anyone be required to pay more than 1-2%?

I do not think your concerns are unreasonable, and the response from your PM being aware that the property is falling apart is more alarming.

The fact that ‘Tarek and Christina’s’ Real Estate Elevated is endorsing this program is quite alarming.  

I have a duplex where I rent out the garage and in my lease I state:“Tenant understands that Landlord doesnot provide any security alarm system or other security for the Premises.

That to me is an alarm for buyers to start bidding fast before 2025 when homes are now listed for $20-$25k more on average.Last month there were higher than expected home purchases and cash out refinances which means that the average investor is watching the market.

Maybe take a look at Whiskey Thief if you want to see a smaller local distiller that is up and coming.