Note that this condition does not require the loan to be fully amortizing, meaning that a balloon payment can be a component of a one-property exclusion loan.

There was a comp on one of the appraisals with the same model as our house that was 500 square feet smaller than ours and the appraisal came back on our house with a lower value than that home.  

I ran a "check this price"comp on zillow then bounced it off a few other websites and it averaged about 100k but I trust you guys.

But there is a lot of condescending I see going on from Group A, whether they have experience or not, and I think that is detrimental to someone who is getting into the game and asking questions.

This is much easier said than done as the proper way to depreciate the property is to have a cost segregation study done on the property to break out the total cost between the land value, building components, land improvements and tangible personal property.

So there's a little bit of a speculative component in any "hot" market.

They should be able to give you an idea how much life each component has left and what the cost will be to fix it.  

I agree with @Curt Smith, checkbook control is almost essential depending on your type of investing and a Solo 401k sure beats an IRA if you are eligible.Contributions limits are roughly 10x higher, there is no custodial requirement for the 401k, you can take participant loans, you don't need the additional expense and administration of an LLC to have checkbook control, there is a built in-Roth component, a spouse can participate, there are additional tax benefits, there is generally greater privacy, and the plans are often quicker to setup and cost less money over time especially compared to most IRA LLCs.

At least in the market where I live, condition is an integral component of a valuation.

Lue C.If you have self-employment activity, you may want to consider a Solo 401k instead of an IRA.Contributions limits are roughly 10x higher, there is no custodial requirement for the 401k, you can take participant loans, you don't need the additional expense and administration of an LLC to have checkbook control, there is a built in-Roth component, a spouse can participate, there are additional tax benefits (UDFI exemption), there is generally greater privacy, and the plans are often quicker to setup and cost less money over time especially compared to most IRA LLCs.