.- Income distributions are taxed at ordinary income rates, but there may be no taxes at all if there are "paper losses" from accelerated depreciation.- If cash is returned to the investor through a refinance, that is a partial return of equity and a non-taxable event.- When the property is sold, any gains are taxed as capital gains. - A 1031 exchange of sorts is possible if you roll the sale of the limited partnership into a similar and larger limited partnership, but you cannot 1031 directly into your own property acquisition.Am I getting this about right?

She has her own parking area, yard, patio, etc. 

The payment time frame is on the long end, but not out of the ordinary.

For example, in a Chicago Class A mid-rise apartment property, we relocated and expanded the fitness center, improved the rooftop patio and reconfigured floor plans to add five new units to the property, adding more than $1 million in value to the building.            

Less expensive and easier as a DIY.My personal preference would be a deck or decrotive patio stones.

Doesn't seem like anything out of the ordinary here, or at least nothing that couldn't be foreseen.

If not, look into ordinary income & subject to self employment tax.

I technically self manage, as I am a Property Manager ;) I walk through all of the properties under my management at least every 6 months, and if I see anything out of the ordinary, I'll take pictures with my phone and address the situation later.

Stanley in his 1997 book "The Millionaire Next Door" argued persuasively that spending a lot of money on a house and living in an upscale neighborhood was one of the main things hindering ordinary people from putting money aside.

I have added laminate wood floors in the living room and hallways, upgraded secondary bath, concrete patio in back, epoxy garage floor, and several other small improvements.