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.

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.

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

Much Better weather which helps limit some of the wear and tear on homes.

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.

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

Just put it in an out if the way corner and let it climatize to the house conditions.

You’re trying to get away from maintenance and weather right?

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