But at the $555k basis + $350k in additions/improvements, you will need to hold it until the property is valued at $905k before you recognize capital gains. 

I'm not too keen on the 3.5 - 5% CAP rates typically found, even though we recognize that the appreciation potential may increase the total return several-fold.

They would be able to recognize what you have.

I think the profitability also comes down to how good the owners of the company are at recognizing business opportunity in their core expertise.

I agree with @Jon Holdman  100%After years of doing financial analysis professionally, I recognize that analyses are highly-dependent upon their unique built-in assumptions.

Nothing.Just say, "Look, I've been here for a year, I don't bother the neighbors, I pay on time, but I recognize that costs go up.

To the last square inch in their name.What your post fails to recognize is what real estate really is.

I don't goof around with it at all because if you recognize it's a great deal, I guarantee someone else does too.  

As long as you understand what you are giving up, and recognize that you are willing to do that because you are conservative and interested in higher cash flow, then you already know what you should do.

But I also recognize that the cost is high because taxes are high.