@Jake Parks - If you're pooling money together and providing a return for people/there is an expectation of profit for someone else and that other party is not involved in the decision making/management of the deal , then you are creating a security and the answer to your question is a resounding yes.The big thing you have in your favor with partnering up with family and friends is that you have a relationship with these people already and that's the biggest thing that the SEC is looking for.

We need to make some decisions about the relative value of an unrenovated apartment as a rental, but all the comps we can find are newly renovated...Thanks in advance for any thoughts/advice!

I would not deduct rent as it sets a really poor precedent.

But honestly, this sounds very very convoluted to me.The most important question I have is who has decision authority?

I don't know if there's a wrong decision..... it's just a matter of picking one and going with it.

"Rich Dad, Poor Dad" is what most people here started with.

if it was just based on the numbers,  I would.But I would not make that decision just based on the number, I would consider the neighborhood, the school district if it matters, the type of tenant I would get, the condition of the house, etc?

I would request and read the minutes of the board meeting where the decision was made to get insight.

Perspective is the key in our business.Everything I have learned about about sales is that humans make decisions based on emotion not reason. 

You will not hear much first hand antidotal evidence to support the need.Whether you do or don't is simply a personal decision in my opinion rather than a business decision.