The truth is, if the owner did increase the rents and was operating the property to market conditions, and at the most optimal level, they likely wouldn't be selling the property.

It's relatively easy to look at comparable properties on airbnb with the same bed/bath, general condition, and location and click around their calendar to get a sense of what they're making in bookings each month.

A friend of mine ended up in a tough spot because he didn’t realize that improvements could be included in the exchange value under certain conditions.

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

Also, I think the various DST asset types and regions, has required that I learn about and pay more attention to micro/macro-economic conditions and regional RE Investment variables that I did not focus on, in the past.

Zoned 401-commercial. .353 acre lot7 0f 8 units updates in past 7 years. unit 8 in good condition long term(13 year tenant). all 1 bed/1bath. fully occupied. 4 units on 1st floor, 4 units on 2nd. just had the parking lot repaved spring 24', good drainage.

We'd like to purchase several homes in great condition with the seller carrying the down payment. 

The appraisal came in at 640k, the comps they used were out of the area, in much better areas, much better condition and really no comparison at all.

Just make sure they allow units to be held as rentals, if so, then what are the terms and conditions if any.Good luck!

Make a move in condition list signed by the tenant., take pictures of everything.