Hello Jorge,In my 25+ years as a real estate broker specializing in multi-family sales, I've only had to challenge an appraisal once.

Here's how a seeming tax disaster turned into a strategic triumph.Picture this: You're sitting with your CPA, reviewing the sale of your residential rental property.

Purchase price: $515,000 Cash invested: $960,000 Sale price: $1,850,000 New Construction development, What made you interested in investing in this type of deal?

The land itself ran us about 3600/ acre, (480,000) and approximately another 20,000 in closing costs.

Would a low enough sales price make all of my concerns go away?

What is the current market valuation of the property based on comparable sales (defined as similar properties, within a 1-mile radius, within the last 30 to 180 days, that are within 10% of total square footage)? 

As a result, the sale was canceled, we foreclosed, and the second-position lender was wiped out.

Im literally closing a loan on Monday where my borrower had a similar situation - the borrower's ex-wife was awarded the property and assigned the debt in the divorce in 2020.

My foreclosure sale date is the end of March 2023 and I will not anticipate getting paid from the sale for another 5-6 months. 

It is the reasonable rental value without the new improvements, because the tax sale investor did nothing to add value regarding the improvements.