Whether the appraisal fully reflects the market is always a fair debate, which is why we’re not trying to leverage it aggressively — even at the requested loan amount the senior position would still be fairly low relative to value.Your comment about what passive investors expect in terms of returns is also helpful.

It’s one that holds together as it moves from one phase to the next, without relying on perfect conditions or optimistic assumptions.That’s what professionals underwrite.About the perspective shared hereThe ideas in this article reflect how we approach real estate investing in practice — treating acquisition, construction, operations, and capital as parts of a single system rather than separate transactions.

Even our attorney who teaches real estate law over 35 years has never seen this collection of issues which is why I shared them here ... maybe you need to reflect on the purpose of Bigger Pockets  Biggest mistake was you went for the easy path of relying on Zillow for tenant screening - a common mistake.Still, you made the choice.NO ONE is 100% successful in this business if they stay in it long emough.Your 2nd biggest mistake was falling for a tenant "cry story" and not starting the eviction process. - You can start the eviction process w/o following through with it if you want to work with a tenant who SHOWS integrity.KUDOS FOR YOU for sharing your experience and wish it was mandatory reading for all landlords here on BP,

If the price reflects the size, the deal can still pencil.

My mindset is absolutely stronger because it only reflects my ability to do the work.

In vacation markets where a large percentage of properties are STRs, the comps reflect the STR revenue and the STR revenue reflects the comps.  

I come across this issue a lot on the Lending side when clients approaching with the property that has a square footage bed bath count that does not match Public record and so the valuation reflects that.  

Whether that reflects real opportunity or just pressure to deploy capital and collect fees is something every LP should be thinking about.

If you zoom out and follow where people are moving before prices fully reflect it, the math starts to behave again.

Hi everyone,As I’ve been spending more time reviewing deals, I’ve noticed that estimating ARV consistently can be one of the biggest challenges for newer investors.One approach that has helped me is focusing primarily on nearby recent sold comps rather than active listings or asking prices.I usually look for:• Similar square footage• Comparable bed/bath count• Close proximity to the subject property• Recent sales that reflect current market conditionsSmall differences in condition or micro-location can shift value more than expected, so tightening comps first often makes the rest of the deal math much clearer.Curious how others here approach ARV when analyzing potential deals.