The realtors will say the appraisal value is not attainable since tenant occupied. 

It is actually your actual basis or current appraisal…whichever is Lower.

At a CAP rate of 7, he should have appraised equity of say $500k plus his original downpayment.  

Our new primary appraised at $7,000 over contract price and has increased ~$12,000 over that. 

Do you consider the % you are leverage based on what you bought for or appraisal value?

I’m worried that’s why he has it listed so high and it won’t appraise for what he asking ($289,900 fully furnished when comps are around $250-270) so he’s hoping a cash buyer will come along.  2.

Most lenders, including us, will do the lesser of the purchase price ($1.095M here) or the appraised value as the amount used to calculate the LTV.

There are two classifications as alluded earlier one is the property itself (used by appraisers) and one on the neighborhood.Mostly people here refer to the neighborhood.I’ve always looked at medium household income to hedge the neighborhood.

The house was expected to appraise at least $106,000 per contract!

Here's the summary I got from the video - she borrowed from bank for mortgage and rehab:Her first property $55k, fixed up and appraised to $90k ($1300 cash flow)She added 6 more properties to her portfolio in year1 - 2 duplexes ($2k cash flow) + 4-bed house (bought from cash flow and equity from other properties).By year1, she made 6-7k profit / per yearBy year2, she purchased package deals and added more properties with 2-week turnaround on fixing them (with the help of a dedicated contractor(s) who lived in one of the multi unit/room properties)She also did Airbnb and arbitrage.