I'm worried that i will purchase something based off burning a hole in my pocket and not for the sake of being a good investment (mentioned above already). 

Based on my experience, it’s often not worth the time and expense because appeals frequently lead to no change in the tax assessment.

Though, if your client base is nice retired people, it probably won't matter.  

Always evaluate your options based on ROI and the impact on tenants to find the best path forward.Good luck!

I'd assume all vanities, lower cabinets, 3to 5ft of drywall and base will all need replacing. 

I’ve seen situations like this before, and keeping control of the contracts has always been the better play.

Yes, typically for accredited investors only (although they often accept up to 100 investors).I have seen a rare TIC based one and yes...more typically DST.

For instance, depending on your location insurance costs could be much much higher than indicated in the book, construction costs are a lot higher, etc. 

I do think you need a separate entrance option or at least two entrances in a four-plex to make it easier on the LTR tenants, but if you are open about it form the start, everyone gets it and you choose the unit composition based on which ones will be STR or MTR.

Let’s be honest, I’ve watched folks who jump into this game as if playing roulette.. firing off offers on duplexes in Phoenix or leaning on some “sure-thing” house hack in Austin without ever sketching out their plan.