That would be a typical scenario for me.

Needs new everything floors, kitchen, bathroom, paint, roof, landscaping and also has termites and a tentant that's not currently paying rent, for a 1000 sqft property they want 160,000 for it, but my comps say for a rehabed house in similar sqft property in that zip code would sell at 220,000k and I would say it needs atleast 65,000 to 75,000k in repairs so my offer price was at 100,000 to 110,000 and the buyer will not entertain my offerI would like to offer more but if there are any surprises I'd like to be prepared for those cost during the rehab process.

I'm not an attorney but to me this offers no benefits.

E&O probably isn't needed unless you are offering advisory services. 

There is a reason why I buy properties that cost a multiple of what typical cheap rental properties are going for.

Fortunately, people with criminal records typically have other issues like bad credit or landlord references. 

State tax regulations are typically able to be researched by any CPA worth his/her salt. 

.- Does anyone see any flaws or can offer some improvements/considerations to the financing strategy of this plan? 

the value added versus cost to add, especially in single family zoned areas, typically results in a large negative initial position.  

Kay Properties has a DST Sponsor arm, Cove Capital that offers no debt DSTs.