Lenders can generally receive all amounts owed (principal balance, unpaid points, unpaid fees, default interest if legal, etc.).

Spring Valley works well for new investors because it has a balanced trade off of cashflow and quality of location.Are you planning to use cash or financing? 

As an investor who is buying, the appraisal is only relevant to you if you are getting a mortgage and as long as you are paying less that's what you want, but you also need spread to achieve the ARV.

My invested capital was $21k down and $8k closing and $40k in renovations = $69k invested.I can sell that property today for $1.1 Million, commission of say, 2.5% which would be $27,500 (I'm a Broker so I only pay the Buyer Broker's commission), remaining mortgage balance of say $70k and some closing costs of about $30k.

What kind of financial returns do you need to achieve in that timeframe?

I'm not checking and/or making reports throughout the year, I can see how I'm doing by looking at my bank account balance.

I found a place that is about to go to auction, and the guy owes $13,500 on his loan, of which the original balance was $108,000.

So if it takes you 6 months to find your next property....well, you paid 0% because there was no balance on your LOC.  

I might not even tell him I had paid it (but I bet Toyota corporate will send him a letter saying new balance is zero so he will find out anyway).

Despite all of my ventures, I have not achieved the financial freedom I desire.