I eat the cost of water/sewer on all of my units, and it doesn't have any massive impact on my bottom line.  

Also, the intangible impact of purchase that may sway the decision to NOT go elsewhere as desired due to the impact of you having to sell.

This is especially impactful when you use any of your cash to buy a property.

I see unrealistic cash flow projections, various challenges at purchasing value, cash flow that on small unit count RE does not scale to make a significant impact. 

She recently found out that she will be taxed heavily on the sale and is looking for ways to structure a deal so that she minimizes the tax impact.

TIC could mean that it is 1031 funds.Yes, any unique structures would be identified in the offering documents.One side deal could be some ownership in the GP but that does not impact you (unless they modified the splits to cover this additional investor compensation).Your diligence is good and the results are as expected...no deal breakers but a remaining level of uncertainty. 

.* You can have terrible neighbors who start a side business selling Meth or, potentially more impactful, have the next door teenager start their own garage band.* If your life circumstances change, e.g. your wages fall and you can’t afford the mortgage, then you’re stuck in the situation until you’re able to sell.* Have you ever seen those scummy “buy your home for cash” ads?

The last thing you want is a difference in opinions regarding how to handle a business related decision to impact your relationship with you partner, in this case your dad.

I learned the value of a impact driver.

No one can predict when the next recession will occur, nor how much it will impact housing prices.