The poster said with the new PM they keep getting requests for repairs and it was implied that that didn't happen with the previous PM. 

Another CPA can correct me if wrong but I don't think there's going to be any recapture here.27.5 to me implies 1250 property and if acquired after 75' means no additional depreciation to recapture.I think there would be unrecaptured 1250 in the amount of the depreciation taken previously, max 25% at ordinary rates.The total gain less unrecaptured 1250 I believe would be 1231 capital gains, not considering other factors like look back and netting rules.Also the land would be 1231 and would get capital gains treatment.And personally I would subtract selling costs as a capitalized selling cost.Amount RealizedLess: Adjusted BasisRealized Gain/LossLess: Selling ExpensesRecognized Gain 1001I could be wrong though so correct me if so.Article for those interested:Depreciation recapture in the partnership context (thetaxadviser.com)While Sec. 1250 only requires additional depreciation to be recaptured as ordinary income, Sec. 1(h)(1)(E) subjects unrecaptured Sec. 1250 gain to a maximum tax rate of 25%.

As you imply: there is no set standard for "conservative", but my personal POV is we are going to be living with 6% interest rates for a while.  

I am not implying this is easy, realize this is not easy.   

With a $56K NOI and the asking price being $1.25M that would imply that the deal CAP is 4.5%.

Former Lifestyles trainer Steve Davis has started this and has some Dallas trainings and meetings periodically.

Higher price does not imply more appropriate comp.  

So this doesn't seem right to me...if I see "new construction" as a buyer, I:a) assume the home has never been occupied, andb) that licensed contractors were used to build all aspects to state code, to offset the lack of required inspections.I know homeowners can do their own work, but shouldn't that imply occupancy and be listed as previously owned home vs. new construction?

Buying Subject To implies a lender is already on the property.

Assignor makes no warranty, expressed or implied, regarding inspection reports or otherreports provided to Assignee by Assignor or third parties concerning the Subject Property.Assignee is advised to independently verify the accuracy of all information contained in anyreports regarding the Subject Property.D.