They loved it because they got some play money right away and steady income each month without having to deal with toilets and tenants.

I saw in a news release where they had bought in another property in Winter Garden for 85 million or thereabouts - does anyone know what fund that purchase is in - is it a new play altogether?  

So seems like a decent play for cash flow but not much for appreciation.

Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

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It's unclear on how that plays into your question about taxes.

These areas could all be excellent long-term plays.

If you play your cards right, this could be a great way to build equity and add value to the property.

I don't know what the issue is/was, but I think a lot of customers want to play games and he probably did his best to keep them on the straight and narrow. 

I certainly want to err on the side of caution in terms of investing in a pricier asset (at least in my RE experience thus far).