Yes, you can purchase less real estate than your net sale and pay tax on the difference. 

A lot of time you won't, therefore you also have to evaluate your marketing/sales strategy to partner yourself up with the right property owners that everyone wins in the end. 

The sale price did.

The area seems to be appreciating by $50k each year looking at previous sale’s and comparing to Redfin/Zillow current values. 

For instance, you can filter MLS or Zillow data on the number of sales per agent.

If your DSCR has a prepayment penalty, you'd need to make sure you account for that penalty in the sales price to offset it. 

Check the comps for sale prices by square foot. 1666 sqft sales for 419k for example  Residential build cost and commercial build cost are different.

Added new flooring throughout the back portion of the building along with paint.

I would include in your future offers that you want sellers to show proof of lead cert, if not have them pay for it as a part of the sale if it is not present. 

@Kenneth JohnsonTo invest in real estate, build a strong financial foundation, educate yourself, network, start small with house hacking, FHA loans, and savings, consider creative financing options, build sales and negotiation skills, and have realistic expectations.