I just don't want to buy that close to the water due to flooding concerns.  

This should be your primary concern.

Non-tangible property includes buildings, land or other inherently permanent structures.I get a lot of questions on which group specific assets belong in, so I put together a list to help.Non-Tangible PropertyBuilding (27.5 or 39 Year Useful Life)Land (Non-Depreciable)Paved Parking Areas (15 Year useful life)Swimming Pools (15 Year useful life)Fences (15 year useful life)Bridges (15 year useful life)Exterior Landscaping (15 year useful life)Docks (15 year useful life)Sidewalks (15 year useful life)Tangible Personal PropertyMillwork or decorative trimCarpetAir Conditioning equipmentShelving, cabinets and display racksAccordion doors and partitionsWall coveringsInterior landscapingNeon or other signsDecorative and business specific activity light fixturesGenerators, machinery and kitchen equipmentWindow treatmentsWhat other questions do you have regarding cost segregation?

This could push your rent up to $7,500 or even $8,000, which would make your cash flow positive.In summary, the refinance could give you a good return in the long run, but the negative cash flow in the first few years is a concern.

Buy the property, lease it up and refinance.One thing you’ll want to know about the credit facility is not necessarily the margin call parameters, which I wouldn’t be concerned with if there is a significant amount of equity in your investors securities securities portfolio, but what are the other terms?

You can learn these things over time.Take note, Due on sale clause isn't even one of the main concerns.

That is honestly my biggest concern. 

So, landlords of exempt units don't even have to be concerned at all.   

My concern with the DST is driven by the overall state of the market at the moment - low cap rates where your risk is magnified by the interest only debt and fees the typical DST layers on the investment. 

This could also lock in a long-term fixed rate if you’re concerned about market fluctuations.3.