I like the investing but let others do all the maintenance.I haven't flipped any houses on purpose but I have sold a few after fixing them up and renting them for a while. 

It would be great to compare notes - how do you feel about expanding your search radius or even considering new-build opportunities further inland?

It seemed that it was about a $300-400 difference in monthly rent in that market for comparable properties that allowed vs. didn't allow pets. 

Since these are high yield DEBT deals at 60% LTV or less on commercial property it’s a RELATIVELY low risk compared to value added or new build equity participations.  

Where did you read about doing that and for what purpose?

Using business purpose financing and brokers/lenders that specialize in these deals should smoothen things out a lot!

Compare this to selling the Market A property in year 3 which has appreciated 5% a year and is now worth $550,000.00.

This can easily happen when the person valuing the property does not account for differences in the subject property and those chosen as comparables.   

All the hard money lenders I've worked with in the past (and the one I currently work for) deem an appraisal necessary for risk management purposes to insure AIV and ARV estimates are good.Curious how you'd manage risk without one? 

Corvallis is notoriously “anti-building”, a more hyper-inflated market inside of its own bubble compared to the rest of the willamette valley.