This tax was created to keep tax-exempt entities on a level playing field with non-tax-exempt entities such as solo 401k plans and IRAs.Similar to the UBIT, there is a another tax called the Unrelated Debt-Financed Income (UDFI)  tax on IRA investment income derived from debt-financed property, proportionate to the debt on the property.

While they do seem low to him I do think it is important for you to explain to him your math and why/how you have derived to those numbers.

@Carl CoeSFH value is derived by market comparables.

Not sure what facts I could derive from it other than needing '5mm$'?

However I'm just trying to understand how you derive incompetence from my PM's Query?  

Much of your plan needs to be derived from personal goals, amount of risk you're willing to take, your personal finanical situation, etc.For example, there was someone who posted the other day whose plan was to save up for a couple years, buy a rental, save a couple more years, buy another one, etc.

Transitioning from derivative trading and looking to build a nice rental portfolio for myself and future family!

The value of commercial properties (multi-units apts. strip malls, office buildings, warehouses, etc.) is derived from the cash that it does, or will, generate.

Are they likely to view it in terms of what it can and has cash flowed with rents and derive a value based on that or are they likely to go off of the county's assessment?

The condition adjustment can be derived (as a %) from repaired vs un-repaired duplexes and triplexes.