I’m interested in how others evaluate and track down these kinds of properties, especially from a distance.For example:When looking at distressed properties in other states or cities, what are your main indicators that it’s worth pursuing?

.- Major stock market indices at or near all-time highs.- Housing construction, supply and existing home sales are all at recessionary levels.In other words, things are good.

Quote from @Dennis McNeely: In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

@Grace TapfumaI wouldn't sell a perfectly fine business to get capital to invest in real estate unless there are indicators thats time to move on to something else.

Months' supply, a key market balance indicator, is expected to improve from a 3.7 month average in 2024 to 4.1 months in 2025.

A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.7.

I interpretttev @Alan Asriants statement different than you but agree it is not clear   He could be indicating pools, basements, sunrooms do not provide a means for an extra tenant.  

I'm sure they're getting something out of it and I've asked tenants if they indicated they wanted to pay by credit card just to see where this is coming from.

Also, if the property doesn’t cash flow or cash flows poorly as your summary indicates, coming up with a creative financing strategy that allows for greater cash flow doesn’t necessarily make it a good purchase or investment.

As for your Index funds, if you were trading indices such as SPX, you would have the favorable tax treatment accorded to §1256 Contacts:  60% of gains are Long Term Capital Gains, and 40% are Short Term capital gains.