For CA investors the flights and time going to the Midwest are cumbersome and choose markets closer like Reno, Vegas, Boise, Phoenix.

John - I believe the appraiser will typically defer to "closer" properties relative to others as along as the sales are within 6-12 months.

There will be more competition when they inevitably come closer to 5%, so acquiring properties with assumably negotiable prices could be a massive hidden gem for you though the APR sounds scary!

I would take a closer look and see if, indeed, this is a big enough problem that you need to avoid it, or, is it providing you with an opportunity that others are missing.

If we crush the rehab I think we can even push closer to 200Cash-Out Refi Amount: $131k (75% LTV of the conservative 175k figure) Profit if done as a flip: 60k. (175k - 115k purchase price & rehab)Cash Invested: 18k (This accounts for $7,500 for down payment to lender, $2,000 in EMD to seller, lender fees, inspection, insurance, title, projected 3 months holding costs at $1000 per month)----------------------------------------------------------------------------If I do it as a flip, from what I understand, I'll be hit with a ridiculous tax bill (24% short term capital gains + 15% self-employment tax), leaving me with roughly $36k after-tax profit. 36 - my 18 invested leaves me with 18k increase to my net worth.

I worked for a group of real estate investors when i lived in Phoenix Arizona for about 3 years before having to move closer to my family here in Columbia, SC.

If that happened to me, I would chalk it up to "my bad" that I didn't pay closer attention to my spam inbox, as he did in fact give and prove he gave proper notice. 

He is looking for $290,000 but realistic offer price with the current interest rate and other expenses is closer to $260,000. 

Hey Annwar, Bucks county and NE phila are good markets to consider and are closer to you relatively than others in the Phila area. 

If your operating costs are below the market, your NOI will likely be matched closer to the appraisal's market rents.