I'm keeping this property for the appreciation (in a high demand area with great schools) and low interest rate for now.  

Since these are high yield DEBT deals at 60% LTV or less on commercial property it’s a RELATIVELY low risk compared to value added or new build equity participations.  

First there is no reason to buy a Townhouse "all cash" instead put 40% down and reap the benefits of an extrenly low rate, No PMI and the option to escrow.

I bought it about 9 years ago as a primary residence, which keeps my taxes low.

A total cost of 6.3Mn over 23 units equates to 274K/unit...this appears unbelievably low for San Diego...I'd want to see full development budget detailing hard, soft and financing costs as well as month by month projections showing construction and lease up cash flows.What's the 2.2Mn purchase price for?

Plus funding is readily available and deals need to mature a few years before profits emerge, so why would a turn key provider not just keep a good rental property.Our inventory is so low in Milwaukee, that sellers don't have a reason to give a discount. 

@Eric Lowe Here's an article with cost segregation FAQs.

That $1400 rent actually makes sense given the low purchase prices.

Quote from @Monish Anand: I'm a fan of the low prices and my plan is to STR since I currently run a short term rental business.

I think there's going to be a serious thinning out of STRs because of the overall market and interest rates, and people just getting fed up with the platforms, unless one of the newer no/low fee platforms takes off.