Not all banks will do this some banks will have overlays (extra guidelines) that they add on top to reduce the banks risk of lending to newer borrowers who may not yet be sophisticated enough to handle a mortgage.I've utilized this for conventional/FHA/VA so its nothing new.

I think not.In legal gray areas it's all about appearances and perceptions.

@Ibrahim S Our son uses a very sophisticated program to draw our plans.

Need to educate the owner, show comps on similar buildings and land value assigned to those comps with the deductions mentioned.What the seller has will be defined by the highest and best use to a buyer, not their perception of the use.The other side is making improvements to the subject, look at the ARV and deduct costs, fees and management required to bring the existing property to it's highest use or at least an acceptable use. :)

If you are borrowing from a sophisticated investors, then they would expect close to 10%, but if you are borrowing from family or friend that have money sitting in CD, then 5% would be reasonable.

The general idea about sophistication level of the buyer sort of drops (in layman's terms).

My high level perception is that the closer one gets to Overbrook the higher the appreciation and lower cash flow.

But ultimately, I think it comes down to perception by people in the area so asking around is the better way to go.I'd also suggest asking realtors.

A flyer has as much sophistication as an invitation to an ice cream social at a church, or a donation to the school sports program for a car wash.The letters I receive inviting me to investment seminars from estate planners and investment brokers are on stationary, not copy paper, much less some garbage colored letter.

A few months ago I was talking to a friend who is not super sophisticated when it comes to real estate.