Ironically, Waco outlawed all new STR's in residential zoning a few months after I created this post.

Invest in Opportunity Zones: Reinvesting capital gains into Qualified Opportunity Funds, which invest in designated low-income areas, can defer and potentially reduce capital gains taxes.6.

Also there are some major zoning changes proposed.Something you didn't mention is financing--unless you're buying cash? 

Property is located at a wonderful highly traffic location. 18k cars a day and will only be increasing. 5 of the 13 acres is zoned commercial, the back 8 acres is zoned large lot residential.

For non-primary residences, they have to follow all of the following rules to receive a permit: - the property must be a minimum of one (1) acre in size (designed as a precaution to disturbances)- The building standards of the underlying zone district must be met - Adequate parking is provided - Defensible Space requirements are met - Valid water and sanitation must be demonstrated - No more than five (5) bedrooms are in the dwelling As time goes on, they continue to become more strict on the rules listed above here, and are actively regulating it.

Was it on yellow paper with red ink?

I think it's pretty clear it disincentivizes new construction or encourages landlords to find ways around it.However, I do believe we could do better in areas for encouraging new construction with zoning reform and other tax incentives.

ADUs additions in single family zoned areas add less value than the hands off cost of the ADU addition.  

Any additional due diligence questions or red flags I should look out for. since its my first time to invest in multifamily3.

In Colorado specifically, we’re also losing a lot of options due to an increase in our wildfire risk scores in many zones.