I've attempted to dispute an appraisal with limited success especially with the Dodd Frank rules in place.

Is this a state by state rule or is it even true?

I believe the value is higher than it was when we bought because of the rent increases and improvements we have made, but value can be subjective depending on the metric you are using (or more specifically what metric potential buyers would use), whether or not that be using comparable sales, cap rates, cash on cash return, the 1% rule, etc... 

I have been struggling to find a property using the rule of thumb 70% rule because it seems like the arv and the price on these properties are so close not giving me the room to even consider, so I decided to look at some multi-family properties and found some occupied duplexes with a huge margin for example duplex with 2b1b on both sides in nice area close to schools parks and downtown area fairly new roof and some updates listed for 49k and arv 175k ,fully occupied.

These areas host professional tenants who know all the rules, and when all else fails, they will create a code violation and then call the city on you and tie you up in court.Second, rising property taxes make it difficult to purchase a rental property at a reasonable cost and still have room to charge market rent and make money.

I see a lot of properties hitting nearly the 1% rule in Raleigh, even some new construction.

@Enzo PazosThey don't make exceptions. 55+ places have strict rules.

@Raphael Yavneh the rules of landlord-tenant court prevent the stipulation allowing that.

To briefly answer your questions, generally, a personal guarantee of a loan would not pierce the veil of an LLC, but there are exceptions to that general rule. 

When your MAGI exceeds $150k, you can no longer take any passive loss.To get around the PAL rules, you can qualify as a real estate professional and materially participate in your rentals.