Even PS blowing up is not really news, it was expected.

Owner occ developments there is no value associated to the income approach so these props generally speaking will appreciate a lot more as the neighborhoods are much more desirable. builders the last thing they want to do is sell to investors if they are creating owner occupied communities.. rentals degrade the neighborhood and they will be sabotaging their own values to allow a bunch of investors to buy and rent out in their communities.So when you buy new builds keep in mind if its a build to rent community they will NOT appreciate like owner occupied neighborhoods.. might be best to find something already 3 to 5 years old where the stigma of renters dies down.. that would be best to protect your investment.

As previously stated, do your due diligence work and keep an open mind.

I was going to do this, but I changed my mind after talking with my target demographic (my kids).

It's still a "listing" in his mind regardless if it hits the MLS.

But keep in mind if your using money you cant afford to get back then buying action property might not be appropriate for your current endeavors and its better to just buy open market were you can do proper due diligence and know you have a build-able site.

As for valuing the property, keep in mind that the properties are valued based on NOI, just like any business. 

They said my request was reasonable and agreed to update the criteria.

Would you mind sharing how you addressed the transition period in your contract?

Keep in mind that accelerated depreciation increases recapture tax (taxed at up to 25%) upon sale, though this can be deferred with a 1031 exchange.