If you are doing business in the State of Michigan, they have primary interest to tax income derived from the State of Michigan. 

slide=1"The evolution in driverless technology will change how we use our roadways, public transport, parking lots and gas stations—and in turn this will fundamentally affect what assets perform well.Firstly, driverless cars will change the importance of location, which is the derivative of transportation.

In math terms (cause I like math), good money is made by investing where the first derivative is positive... and real money is made when the second derivative is positive too.So we don't get stuck on the tired "appreciation vs cash flow" or "CA vs Midwest" topic, I'll take a concrete non-RE example.  

The appraised value should have been derived from the income the property is currently producing (NOI) divided by the Cap Rate for properties of similar types in that area. 

Absolutely you should calculate it and understand the impact to your cash flow.Here is another calculation I would encourage you to do:Take your current cash flow and divide by your equity in the house to derive your return on equity (ROE)Compare that to your future cash flow and future equity to figure out your ROE after refinancingIn most cases you will find that your ROE goes UP through a cash-out refi. 

Being that I am an FHA buyer in a cash derived market, who’s to say I can’t use these guys to get a property, rent it for a year, and have that property under a right to purchase agreement down the road?

@Jeff Miller- if you want to do the loan in the LLC  name - you will find very  few lenders that  will be able to  assist  .....if this is the case - your first  question  should be : what  lenders  can close in a LLC name  ...and then  go from there ........if you are  OK  with getting the new loan in your own name - then most lenders   should be able to  assist  ...fyi - if you do the loan within 6 months - you will need to  provide  papertrail  for the lender to  show where the  funds for the  purchase   derived from .. if you borrowed / were gifted or  used  soemones elses funds to  close on the purchase  you  might  want to wait 6 mos +  to do the cash out refi 

They also refer me to other investors, which is where the bulk of my business derives. 

Before you pay anything, I would check with your accountant because I do not know if, for out of state residents, they look at total income or only rental income derived in the state of California to calculate the %.

Keep in mind that if you are deriving your direct cap rates from market data, tax and other expense risks should already be factored in to the market data.