The reason the property hasn’t sold is because the wholesaler made a mistake in valuation - hey, IT HAPPENS.Look, I don’t want to be totally discouraging.

We are renting the home as a Padsplit with a total of 5 beds and 2 baths. 

Unless it's obvious tenant damage you must fix things in the home. 

It also doesn’t typically mean the overall premium goes down, as the other rating factors are increasing more and this tiny decrease is lost in the overall total.   

If the appraiser pushes back, point out that there are old houses in some markets that have NO rooms with 7' ceilings and therefore 0 sq ft of GLA but OBVIOUSLY those houses are still livable and still have a value.

In fact, they stated that the total amount “covers the charge of the replacement purchase and labor to install it under one price.”

I would obviously plan on re-financing when the time is right, which would make the CoC returns look a whole lot better.

We bought it with a HELOC on my mom's primary residence for the first $40k, then hired a contractor for demolition and major renovations, did cosmetics ourselves and used more heloc money totaling $60,000. 1 year later we listed it on VRBO and AIRBNB and refinanced the $100000 into a fixed rate mortgage.

The homes I own total to 24 bedrooms, 8 bedrooms per home (1 master and 7 shared bath bedrooms).

I let them know, yes proceed on T&M not to exceed the original number and do not do any work above that number.Week later contractor finds an issue and says "hey, we have another issue and we can take care of it for $500, As it stands I believe I am going to come in under my estimated total." - So we authorize the work.Contractor submits the quote yesterday for $8k and is threatening me about it.