Of course, you want comps to be as close to identical as possible in terms of sq ft, beds, baths, rooms, acres, garage, etc.Give me a call if you want and I can give you an idea of the ARV of yours.  

The principal plus the interest received are nearly identical to the original investment amount (but a loss nonetheless).

If it is a loan, and you claim it as a gift on the mortgage application, it is fraud and very slippery slope.Tread carefully. 

Nobody is really checking these items after you close but you will sign about 3 different items stating you understand that you must occupy the property and that mortgage fraud comes with a $10,000 penalty.  

I would not recommend anyone write their own ppm for non-acredited investors unless they have done several already, the offering is identical to the previous offerings and they know how to file it.

Some think it prudent to push the envelope with the IRS especially with deductions because it is rarely considered fraud.

Yeah, if I have to sign something, that would make me very uncomfortable and the word fraud is scary to me in and of itself.

It either has to come from your own resources or be gifted to you.I suspect it works similarly in your area.That said, there will be folks who will tell you ways to circumvent this requirement ... and it happens routinely, but in the end the lender could pull the plug on you if discovered ... or worse, the words mortgage fraud can come into play as you will likely attest that the downpayment comes from your own resources.

@Cole Hagen my feedback would be: 1) don't commit income tax fraud by purposefully under-reporting your income, I may be wrong, but I'm pretty sure the IRS rule is that other/misc. income in excess of $600 must be reported, and 2) if you ignore 1) and do chose to not report it, it's probably not a great idea to post about the fact that you're considering doing so on a site where you have your full name posted, how easy would it be for a Google search to turn that info up or for someone to report you to the IRS based on this post?

He committed fraud when he installed an old hot water heater and altered the date on it.