Versus buy and hold.  

Any other suggestions to improve my due diligence process would be appreciated.

I have heard vented units don't dry as effectively but haven't heard any complaints from my tenants and believe the technology continues to improve.

This is due to bonus depreciation which allows taxpayers to deduct 40% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

I do have a very specific and curated buy box, so I know what i'm looking for in terms of zoning, lot size, buildable/improvable sqft, location, etc.With that being said, do you still not recommend going through sheriff sales?

They would either be capital improvements or costs of selling, most likely. 

Look at their finishes and what they offer guests, use that as your baseline, then improve upon it.

These items have me slightly concerned and weighs on my decision, making me want to "take the money and run".Question: Would you sell, abandoning a 3.125% interest rate, $1000/mo cashflow (which I believe would be roughly halved if a loan were taken for the capital improvements to the larger property), to lock in the equity gains tax-free made since 2020?

That will have a much larger impact on your outcome versus the debt product. 

Do you have cash reserves for capital expenses and improvements?