That is a 3.4% cash on cash return in year one (7903/232000)Year 2, reduce 7903 by 5592 because there won't be property tax break so that is $2311, or 1% c/c return in year 2 (2311/232k)Year 3, reduce the $2311 by $4930 for PM fees for a net loss of -$2619 per year or a -1.1% c/c return in year 3 (-2619/232000)Essentially, these numbers are so far off of pro forma and there is pretty much zero wiggle room on these numbers. 

As for income verification, I require the applicants two most recent paystubs and if self employed I need their most recent tax return.

Your money sits for a long time with no return when you build. 

Credit Rating/Bank Statements/Tax Returns: Specify your requirements, if important to you.Purchase Criterion: How do you define a good deal, which will be profitable for your borrower and safe for you?

But you also have to apply your level of risk aversion or risk adjusted return.  

In the event your property does not sell, pivoting to a rental could be your best option and allow you to maximize return.

This deal leveraged strategic financing, value-add renovations, and market knowledge to deliver a strong return.

Too bad AppFolio won't return my calls or emails...

Is this a realistic path to reasonable CoC return? 

I’ve reviewed a number of theses DST’s across numerous asset classes  and there performance /returns are generally fairly low and unimpressive.