Home prices are rising steadily, with a 7% increase from last year.

It will produce an opportunity to reset the park the way you should want it to be done. 

After a year, my lawyer negotiated a settlement offer for $17,000 which is 40% lower than the original price. 

Your gain will be Sales price less sales expenses(Commissions, closing costs) less Adjusted basis.Your Adjusted basis will be Purchase Price plus Improvements less accumulated depreciation.Depending on how you categorized the improvements / furnishings will determine how you will calculate your gain.If you already took depreciation / expenses for the furnishings, you can't also count it towards basis to reduce your gain.Best of luck.

Again, the capital tax rate would be based on the sale price - the stepped-up value of the property when I acquired the third interest.

According to the US census data Los Angeles, CA county population declined 3.5% in the last few years as you can see here:(Data from April 2020 - July 2023).But Real Estate prices went up in that period 25% according to Zillow (From $665,868 to $834,772).Rents went up 18% (From $2,380 to $2,827).How that can be?

We agreed on a purchase price of 105,000, got all agreements signed, but no mention of rent increase, or warehouse money in the agreements (shame on me, shame on them).The leases came due between me viewing the property 6/1 and accepted purchase agreement 6/26, I saw the updated leases when the lender was wanting them, and noticed the brothers lease stayed at 700 while the other was bumped to $800.

There's DSCR lenders that'll do 5-20 units, but they often have minimum value requirements of $50k/unit.MS can have some low priced RE, that's why the price being too low is the first thing to come to mind.

The obvious play would be for the low purchase price/cash flow. 

Definitely an interesting idea, but I think you have to either have some property management who has experience / knowledge with managing properties like this or some personal knowledge / experience running these types of properties.I also think there is good opportunities around college campuses like Kent State, Toledo, Baldwin Wallace and rent out per room to college students.