Approaching a lending broker may be appropriate in this case.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

The good news is that with the right approach, you can also achieve positive cash flow in these markets.Ultimately, success in real estate investing hinges on selecting a growing market, a desirable neighborhood, and building a strong support team.

Anyways, the appraiser used two of the properties that were within the comps report (the higher ones) and we managed to overperform our ARV target by $20k.Lesson Learned -> Later we realized that the appraiser also looked at the rental comps, and the average rent used in the income approach was $2,000...we are renting both units for $2,600 and the average rent in general for this kind of duplex in the area is $2,100 - $2,200, so we could've easily hit a higher ARV, crazy right?"

I used to go with your approach, but over time I switched.

Aloha @Kaleb Ahonen - my team and I take an Off Market/Distressed Property approach in the Inland Empire, San Diego, Orange County and LA. 

Hello BP family, I own a small commercial stand alone building and have been approached by Edward Jones to build out and lease the property. 

I was approached often in California to be an rmo and even though the money offered was quite good, I passed, because of the work required and the liability.

So the performance here is really on me.Based on the opinions and realization I’m now leaning towards a middle of the road approach - keeping the SoCal room rental house, get that to market rates (~6% ROE) and 1031 the mountain houses.

Thank you for reading this, I've always known I'd be at my most uncomfortable when approaching adulthood and what's worse is I have no one on my side.