It includes money toward acquisition and it includes rehab money held in escrow.A very common product for anyone flipping or doing the BRRRR method.

The original seller held a note for 5 years at 5% interest.

I think he should have held onto it longer (he doesn't need the money), but he's in his 70's and wants to play while he still can!

This can be a very tough line to toe, especially when potentially hundreds of thousands of dollars are on the line.While appraising is all about numbers, there are people involved, and anytime you have people involved, the task becomes infinitely more complex (yes, infinitely -- as an example, there's no computer in the world I can't beat in poker, but you add an idiot with half a brain and at best, over a small number of trials, I'm 70/30).So, I certainly don't mean to bash appraisers as a whole, though in this case, I had every intent to bash a particular appraiser...

At this point I told the property manager to honor his 30 day notice to vacate, that his deposit will not be held against him and he can go.

@Ralph McDaniel,The IRS applies the Long-Term Capital Gains rate to investments that are held for more than 12 months. 

I believe his REAL high net came about not by compounding in stock market but by actually buying companies.I once read that the wealthy people use stock market to beat inflation but real wealth is held in real estate. 

The outcome was that the rehab cost more than we planned on, we held the property for a little longer than we wanted to, but we made money and are excited for our next deal.

There was an article in Westward in Oct or Nov of '14 regarding the issue, and that tiny homes under construction are being fined and held up indefinitely.  

@Nate Sanowfor 2018, about $1,100 per house. but that only includes the properties held for more than 12 months. if I include properties purchased and rehabbed in 2018, number drops to $678 per property. but it should be back over $1,100 next year unless I buy and rehab more.