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While NOI is a given number that can be derived easily, how is the cap rate derived?

Annually, the Management LLC would "distribute" to the Property LLCs, but it would all flow thru to your 1040 Schedule E - unless you get partners, which would require a 1065 return with K-1 distributions to the partners.

Sometimes the workers are smarter than the ones distributing the work. :)

Any thoughts would be appreciated thanks  Please add me to your distribution list

You also have the problem of appreciated assets and then losing S Corp / revoking S Corp, and these assets are distributed to the shareholders at fair market value.

Typically a DST sponsor will only distribute through an SEC-registered broker-dealer for compliance and regulatory reasons.  

It’s the pot of money that gets distributed to investors.

It's also quite a bit more complicated than "this qualifies for 5 year and this doesn't qualify" since there isn't really a "list of every possible asset and it's depreciation life" most assets that qualify for 5 year fall under asset class 57.0 assets used in distributive trades and services.

Also, rentals in S Corps are generally bad should you want to revoke S Corp election one day, the assets are distributed at fair market value and likely will have capital gain without cash.Alternatively, a multi-member LLC taxed as a partnership is considered a pass-through entity, and if your state allows SALT work-around / PTET on rental income, a partnership solves both issues.We recommend partnerships often for rentals especially STRs.