Jay Hinrichs Oregon currently has more MJ than it knows what to do with, it’s not just Portland, and a supply glut has been causing prices to tumble.

@Brant Garner typically I am pretty risk adverse my main concern is that I will be able to finance it conventionaly down the road and sell it to another investor.

I have holding costs, and M concerned that it won't sell before the holding cost money runs out. 

That causes a lot of pressure in the area with your leaks and would account for the dirt you see around them. 

Also structure has to be a concern.   

The use of a particular type of deed typically raises concerns for a buyer because of what a prior owner is guaranteeing or agreeing to assist with or not, but like Greg said, if you have a title insurer willing to insure yours it's because they've done their research. 

The main area of concern is how lines 20-26g on the 4797 don't seem to have any provision for the deferred gain that is the whole point of the exchange, so when filled out it seems to show the whole gain as taxable capital gains.  

I really don't understand what my broker is so concerned about. 

Overall I’m more concerned with cash flow and returns than a cap rate but I want to make sure Im creating an accurate and somewhat conservative scenario.

But he may be right as well. you should have gotten multiple bids before you started the project. that would have addressed your concerns regarding overpaying.