Will the REIT continue to buy more properties? Will there be taxable gains as the REIT grows and values go up during my hold?

The REIT fund is professionally managed and usually aims to strategically acquire and disposition properties to benefit the fund. Most dividends investors receive are taxed as ordinary income at their marginal tax rates rather than lower qualified dividend rates.

Any profit is subject to capital gains tax when investors sell REIT shares. With increased basis associated with the non-recourse debt in the DST phase, it is possible to have minimal tax on the income in the OP unit/REIT phase.