The property prices are lower compared to other markets.If you'd like to learn more, I would be happy to have a quick chat with you and answer all of your questions! 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Vetting tenants is essentially the same as regular tenants, but expect lower credit scrores, bankruptcies, etc.  

Instead of refinancing immediately, you hold out for rates to drop, which many economists predict will happen as inflation cools and market conditions stabilize in the coming years.Refinance when rates drop, extracting capital while maintaining cash flow at a similar level due to the lower interest rate.Repeat the process by redeploying the refinanced capital into new investment opportunities.This version of the BRRRR method is more of a long-term play, as opposed to the quick 6-12 month cycles many of us were used to.

The last thing you want to do is buy this property and end up with a lopsided deal if the ARV is significantly lower than what the wholesaler claims.

I am definitely the one doing the work on the LLC as well as the tax complications being lower with a single member versus the spousal partnership.

Quote from @Connor Hibbs: Hi John,Most lenders are still able to lend on STR properties, just with a slightly lower LTV than most long-term rentals (5-10% depending on where you go).

Your raise happens to be on the lower end of where such firms operate but certainly a plausible option assuming the investment thesis is sound & the GP checks out. 

You don't often see this with banks, although their guidelines usually differ and in most instances offer lower leverage.

@Elizabeth Southall All you can do is appeal the appraisal results, and if unsuccessful, proceed with the lower value or start over somewhere else.