Adam I bet dollars to donuts this is not CA property sounds like D class rust belt or mid west.Chicago etc.

Sounds like you have some long-term goals around being an investor.

It sounds like you’re on an exciting journey in real estate.

DST's have their place and purpose but are not the end all to be all investment.You need to still make sure the deal is sound and if you need to exit the DST is it allowed later and at what discount would you need to sell off your shares.   

Doesn’t sound like this was the case.  

It sounds like this is a primary residence purchase if it is for your family, so that would result in a different answer than an investment property.

Sounds about right."

sounds completely legal, maybe my friend is crazy and he wants to lose $900,000 There is transfer tax and property tax.

@Garrett Brown you’ve got a lot of options, but it sounds like cash flow is a top concern.

The way you described the deal in the 1st paragraph makes it sound like your "partner" is basically a lender.