Maintenance costs. $225/month seems dramatically low.

However, due to unexpected construction costs and delays, the project is now at break-even.

.- Property Management:Managing properties remotely often requires hiring a property manager, adding to your costs.- Increased Travel and Communication:Regular visits and long-distance coordination can increase both time and expense.- Legal and Tax Complications:Navigating different state laws and tax regulations can be complex and confusing.Out-of-state investing can be a great way to grow your real estate portfolio, but weighing the benefits against the potential challenges is essential.

Again, it is worth the cost to talk to a CPA.

No here is my non legal opinion.

I'm struggling to find good tools/strategies/professionals to help ballpark the rehab costs so I can make a reasonable offer. 

Ive inquired since that check with no response.  

Even worse, the city had no idea how to comply with the law.

I suggest conducting a cost segregation study on both the acquisition and improvements. 

The way you explained it, the DST sponsor would have to in their Operating Agreement a way to  accomplish  a separation of ownership or at a minimum no prohibition for a separation of ownership.