Will appraise over our rock bottom selling price of $500k but buyer is "making the case " that he only will qualify for $490k, DP included. 

@Zach EdelmanMost will use the lower of Lease versus Fair Market Rent as determined by the appraisal. 

Chris do you send independent appraisal to every home for the note you want to purchase before even buying it ?

I sold a few homes in Jackson MS to Naca buyers.. its a process and the homes had to be in perfect condition before naca would close  IE FHA or VA appraisal standards at the minimum.. the program is designed for first time home buyers or low income home buyers also NACA was very firm on us ( the seller) buying down rate and closing costs. 

Maybe pay for an appraisal up front or if you are financing, the lender will do one and if it doesn't appraise, you can walk away with no consequences other than your time.

Might be worth seeing how flexible the price is.Cypress has a newer Duplex/4plex community...the numbers won't work as a traditional rental but might make sense as a house hack.If you look further out...there's a new construction neighborhood in Sealy (Westward Pointe) with lots of incentives that I've sold a few homes in...the appraisals mostly have come in much higher than the purchase prices.

If you paid in cash, you only need to wait 6 months to do a cash out refi and get as big of a loan as the appraisal will allow.

Fully aware that we would be at the mercy of the appraisal but trying to think of ways to be competitive to a seller when multiple offers are expected.

Way to get that number you needed to hit on the appraisal. 

I do not know how many appraisals on ADU properties you have seen but I have analyzed dozens.