Apartments are identical other than upgraded appliances, re-grouted bathrooms, and kitchen backsplash (along with much nicer paint colors).

And that's not said to be demeaning to appraisers, who do serve a legitimate purpose (mostly to prevent fraud in lending).

I get that they don't represent buyers in these transactions and as an investor you should do your own due dilligence... but advertising "great" deals without solid evidence and providing unrealistically high ARV numbers... that should be considered fraud.

Looks like somebody got a little desperate when their flips didn't work out and opted for fraud instead. 

For example, suppose you have 10 "identical" properties.

The anti-fraud search software ubiquitously used by the mortgage industry often isn't run until a day or two before closing.

If the units are identical then 50% of the sales price would be allocated to primary residence and 50% to investment. 

If you don't, its considered fraud and there are serious penalties for that.  

The issue is if you do it on an owner-occupied home within a year of closing you have also committed loan fraud which is a federal crime and a felony.Most if not all portfolio lenders will allow you to close in the name of an LLC, and some require it because they classify the loan as a business loan and do not have to follow Dodd-Frank protocols. 

Meaning the duplex I got for $40k, its identical neighbor sold for $79k, 2 weeks ago.