What's funny about this is, half the time the appraiser doesn't even care.

Good" in the context of losing, to me, looks like this: Sponsor honestly appraises the situation, and provides a blunt assessment of where they made a bad bet, failed in due diligence, operated poorly, or were totally irresponsible with leverage and timing.

Here’s the plan I’ve come up with, and I’d love to hear your thoughts on its feasibility, potential risks, and any improvements you might suggest.The Plan1.Pay Off Mortgage: I currently have $170K left on my mortgage, and my goal is to aggressively pay it off in the next 1.5 years.2.Establish Emergency Fund: Before making any big moves, I’ll set aside 6-12 months’ worth of expenses as an emergency fund.3.Extract Equity: Once the mortgage is paid off, I’ll pull out the equity from the property.4.First Flip: Using the extracted equity, I’ll purchase another house, fix it up, and sell it for a profit.5.Reinvest Flip Profits: Instead of buying another property immediately, I’ll use the profits from the flip to renovate the original property, aiming to increase its rental income and appraisal value.6.Reappraise and Extract Equity Again: After renovating, I’ll get the original property reappraised and extract additional equity based on its increased value.7.Purchase Rental Properties: With the additional equity, I’ll start purchasing rental properties that offer positive cash flow and have growth potential.8.Leverage Equity Strategically: I’ll use equity from the original property and any new properties while maintaining a healthy loan-to-value ratio (LTV), ideally around 70-75%.9.Build Rental Portfolio: I’ll focus on acquiring a mix of property types (e.g., single-family homes, multi-family units) to diversify my investments.10.Focus on Cash Flow: I’ll prioritize properties that generate consistent positive cash flow, ensuring that rental income covers all expenses, including mortgage payments, maintenance, and management fees.11.Long-Term Hold: I’ll hold properties long-term to benefit from appreciation and tax advantages.

Meaning you will only be able to get 75% LTV cash out and on a $225K value (if appraisal comes in at $225K) your looking at a loan of $168,750.00.You have to factor in closing costs and your loan payoff which might put you around $138K to $140K which leaves you with $27K +/- in cash at closing.

Effective age on the appraisal report is 18 yrs versus actual 39-year age of the unit, with a C4 condition rating. 

To get a full appraisal, I would need to do a cash out refi. 

That will cause a sellers market due to multiple bids over bids and properties now appraising back on positives. 

Off the cuff, FHA can be difficult with appraisals, sellers willingness, self-sufficiency test, life time PMI, & FHA premium.

IF you're in a HCOL area or HCOL region in a normal area, definitely add a bathroom it's a huge appraisal add and game changer. 10-15 years from now when you sell, nobody wants a 3/1 now and won't then. 3/1s stay sticky in any market I'm in, I'll buy distressed and add 1-2 bathrooms and get a huge return on just that. 

And in the first 4 to 6 months he will net over 100k on a 20k investment And I make my normal funding fee's which are higher than HML fees  but I dont do appraisals and i have zero junk fees..