Maybe include in the contract an increase at year 2?

One of the value-adds we want to do is add a washer dryer hook up in the units as we can get a nice rent increase for it. 

You don’t sell it on an option at market price, you increase the price, maybe $239k.

In order to increase payments for one thing that may benefit Peter, they have to raise taxes on Paul (or inflate the currency).

My condo community has enough reserves in place where it doesn't directly impact us in terms of a special assessment but my HOA dues have increased 2.9% for the last two years.2.

Declined it and took a chance.

How much potential up side is there in a rent increase?

I didn't know what to put in the "Expense increase" and "Income Increase" and "Property Value Increase" so I just did small numbers. 3%, 1%, 1%  The property would need approx $100,000 in renovation, that I would not do yet.I am selling properties similar to this around $650,000.0I intend to just hold on to this property for the rental income. 

There's right around zero chance you'd get in trouble for that since the IRS has much bigger fish to fry. 

If a property that is worth 5.3 million today at 6% cap approximately, can be bought at 5% interest rate; if the same property I could get at 4.3 millions in 2 years if the market falls, then interest rate possible at 6-7%, my cash on cash may be better but still not significantly better due to the higher interest rate, plus opportunity costs of sitting on capital for 2 years (1.3 million investment earning 1% bank interest instead of 7% COC if invested, loss of tax break depreciation, total loss may equal 200k loss in profit), plus increase in the rents and some value add could increase the cap from current 6 to 6.7 or so in 2 years.Unless, I find another source that can give me a COC of 7%, sitting on cash for 1.5-2 yrs for market to correct may itself be a loss.