I am not looking to alter the taxes in any way, but instead to give a more accurate snapshot of the financial state of the business.My accountant mentioned that if I insisted we could add a line to the long term assets that would depict the appreciated value, but then we would need to also add an offsetting line in the liabilities so that we would not "screw things up". 

Therefore it does not alter any of the income tax consequences of your activity in any way. 

Arn Thank You for this post , I will take this to heart and alter my plan.

I don’t think it wouldBe an issue after closing with a 5th unit because it is not like you are altering the property into a bed and breakfast or boarding house.

Hello everyone. I have to apologize in advance because this type of post seems awkward, out of place, and borderline inappropriate but I’m at my wits end here and desperately need advice from some pros. I’ll save the ...

., no commingling of business and personal funds, no alter ego actions, doing proper meetings and minutes, etc.) and have good/proper insurance I would sleep ok at night if I were in your shoes.

As long as the tenant screening is strong, your turnovers would be minimal (not factoring in life altering event). 

Buyer and seller, however, may agree to alter or delete its provisions or to use a different form.  

I did put a provision in the lease that says, "The apartment owner has the right to stop or alter the terms in this lease at any time with a 60 day notice to the tenant(s)."  

You can run into an issue where the bad tenants bring a report that has been altered (which if they are providing it themselves is very easy to do).