The worst thing is that states and municipalities are using wildly inflated data that AirDNA and their ilk are pitching to create more and more restrictive zoning laws based on the perception of windfall host profits, further creating challenges to supporting our mortgages in a region with an already long 4-6 month shoulder season.

With new builds you have to watch for developers building in TI's with inflated rents on the resale.

Property is not worth $1M and was over inflated to appear note holder has 20% equity.To answer question this is seller financing but this end result rarely if ever happensSeller would be better selling it for $800k+ cash and end up in better place

I do this because it is a hedge against a business downturn, failure, and a hedge against inflation.

The covid money is all gone and the economy is so so right now which should keep inflation down and keep the fed pushing rates lower which will help get mortgage rates lower eventually.

@Boone BergsmaIf they were all selling for par, B,A,CB because it’s fastest term, then A because higher interest rate possibility to get paid off on refinance.C long term low rate and your overall yield barely keeps up with inflation.

You are financing at less then likely future inflation rate.

I have heard of instances where one (the borrower) is allowed to choose the appraisal company or put in a recommendation for one which the institutional bank may honor, and then the person already knows someone there, that they have gotten to know with time from other projects, and it's not unnaturally inflating value but favoring a good one to keep the reoccurring client.  

I benefitted from rent inflation, but I also did some things that would help improve net cash flow (appealing property taxes, for example).Happy to send you some resources with more details on how I accomplished it.

We fear that Lakewood is over-inflated on purchase price for multi-family properties.