Buyers would evaluate this deal for the upside as rents would be expected to rise substantially over the subsequent few years as LIHTC tenants move out and units are re-rented to market rate.

Meridian is in the top 5 fastest growing cities this year, and prices are rising exponentially due to demand.  

All you've done is move the expense entry for that place to live to another address.Over the long term, house prices tend to follow inflation. 

Tenancy act here allows 2% plus inflation - 2.5% this yearHow much can you raise rent every year?

Prices in that time frame were commonly inflated at an artificial level.

Yesterday August 20, 2019 the President of the United States said that they were considering Indexing Capital Gains for Inflation. 

I'd choose it based on which unit gets you the most rise in rent after upgrades, move into that one, fix it up, then rent it out (possibly to existing tenants who want to upgrade for higher rent), then repeat until all are upgraded, you've met your occupancy requirement, and then all can be rented at full market.    

Closer to downtown and down I-54 West, there’s still a good bit of development and i could see property values still on the rise there.

I think rates will continue to drop for the next several months and then rise in the beginning of 2020. 

Is your market rising, stable or likely to go down in the next 2-3 years?