The property is a duplex with an ARV (after repair value) of $700,000, making it a strong deal.However, I want to ensure I’m not overlooking any potential red flags.

Quality?

We pay a few hundred dollars for a professional quality pitchbook with the financials and that has been money well spent.

It really depends on location, quality of home features, amount of privacy for renters/members, and competition.

It's usually not a lot, but I've had to replace a broken office chair that was only 2 years old, had better quality bed pillows been switched with cheap Walmart ones, and had a blanket go missing. 

With regard to your "DST" and as with many highly structured tax vehicles that have a potential "self dealing" quality to them, there are a number of potential potholes you can easily step in along the way (e.g., constructive receipt doctrine, effective control over nominal 3rd party relationships, lack of genuine risk bearing and compliance with transactional terms, etc.).

Of course, if you are doing a lot of buying and selling, it is always good to know who the players are because there are some that do top quality work and others that do not.

But we already get deductions for maintenance, repairs, and improvements.

I learned that it's better to go for quality the first time if you want it to last.Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My research guided me to form an LLC to hold the properties during repair/rehab (I am buying properties that need major fixing) and move them to another LLC where I will be collecting rent.