Even if you don't have to do it by the letter of the law today, the new lead law will require you to do it sometime in the next few years anyway. 

The DST is viewed as an estate planning tool, and therefore exempt from the far-reaching corporate tax laws set forth by California’s FTB.

Also, from a public records search, I can see that the bank has filed a law suit against the owners for nonpayment of their debt.My questions are:What is the best way to approach this deal?

@Jason D.I’m in a similar situation with a little twist, if you can also help me out :)My in-laws and I have agreed that I will personally fund 50K to rehab their single family house.

If one or more investors just pays money and expects to get a profit based on others' efforts, you have created a security and SEC laws apply.

I can send you a couple of good condo Assoc law firms and an accountant if you want. 

And the new tax law accelerated that.  

This is in regards to Federal filing, but I'm in Iowa.Are there any tax professionals that can confirm or deny that's the case with the new tax laws? 

Well, I guess there's no better time than now to learn.1) You don't ask your Realtor about how to be a landlord, you ask a landlord how to be a landlord.2) The list you seek is one you have to compile yourself after reading books, researching NV tenant/landlord laws, reviewing other landlord's leases, watching videos, listening to podcasts, consulting with an attorney, hiring an accountant, and gathering all of the knowledge you can.3) The more you know, the easier your investing will be, and the more money you will make.

Get a professional tenant who knows the law more than you do and you can end up with something like that.