With the crazy market in my area, labor would be expensive, so this property might need $120k of repairs but the location would only warrant a $140k list price max.

Does that seem warranted?

We held it rent-to-own $28k @ 12% & the couple completely rehabbed it at their expense. 4 years later when they visited Ohio he was arrested for outstanding OH warrants.

Unless you’ve got quite a few STR’s, the amount of work doesn’t really warrant a PM.

When you see/read this--would this warrant a more thorough inspection?

If you wanted to charge $1200/month because the house has improved enough to warrant it (and the improvement won't impact it if the original $1000/month was the max in the area already), then charge $1200/month before you refi.

@Andrew Paz  You can cash out under non-warrantable condo product with portfolio lender.

Or is another approach (something I may be missing) warranted???

Also they don’t go crazy on putting in upgrades like granite if the neighborhood doesn’t warrant it.

People are opening their eyes to the fact that the time and money invested doesn’t warrant the benefits.