If you want to charge higher prices your place needs to justify it.

If they have no proof that they notified you of the problems, then how do they justify withholding rent? 

The 50% rule is not perfectly accurate, but if your underwriting differs significantly from the 50% rule (which it does in this case), be sure you can justify the discrepancy.  

I justified going to the 10X Growth Con in 2017 and a couple local investor seminars.

you're not missing anything; i have the same worry about gator lending. however, sometimes people are looking for way larger amounts of transactional lending, for bigger deals. in those cases, it's more justified for them to need the $ IMO. but also, more is on the line, so you still have to really do your due diligence. if you're really interested in being a gator, take pace's program. i haven't, but if i was going to seriously get into it, i would. 

Don't waste your time trying to explain or justify the applicant's behavior. 

It has to be to justify such returns.... 

We would need something legally showing that the tenant is back paying to justify keeping the security deposit in this case. 

That way you are justifying your lower offer.

Appraisers often rely on comparables, so showing them properties with similar square footage and added living space may help justify the value.Get Another Appraisal: If possible, you could request another appraisal or hire an appraiser that specializes in valuing homes with finished basements or unique features.