We also provided another comp that would work more in our favor, and is justifiable (better reflection of age and size of our house compared to one of the other comps).

Make sure all costs are reflected there except borrowing costs.  

Purchase Price: $150,0003.5% down: $5,250Closing costs: $3,000Rehab (adding walls/closet for additional bedroom): $5,000monthly mortgage+tax+insurance (quote from lender): $1176 (1176*12= $14,112 for year)other monthly expenses: $300 (300*12= $3600 for year)All-in cash needed for year 1, assuming absolute worst case scenario and I can't find any single bedroom renters for the first year while I am living there:$30,962 After $7,500 room and board reimbursement from employer: $23,462I plan on pricing each bedroom way below market rent at $350/month, to try to fill up each bedroom and cut away at year 1 costs.If I can rent out 1 bedroom: (23,462-(350*12)) = $19,262 If I can rent out 2 bedrooms: (23,462-(700*12)) = $15,062If I can rent out all 3 bedrooms: (23,462-(1050*12)) = $10,862BP Calculator (after year 1) assuming worst case year 1 scenario:Note: I added money to "repair costs" to change numbers to reflect 12 months of mortgage payments I would have made during year 1.https://www.biggerpockets.com/analysis/rentals/df4b1eda-9cde-41ee-afb7-f8d9cdb8724c.pdfBP Calculator (after year 1) assuming mid-scenario where I manage to average 1 bedroom rented during the year I'm there.https://www.biggerpockets.com/analysis/rentals/df4b1eda-9cde-41ee-afb7-f8d9cdb8724c.pdfCoC ROI goes from 5.7 to 8.5.Also, I plan on eventually refinancing to a conventional loan, lowering my fixed costs from about 1200 to somewhere in the 800-900 range, freeing up 300-400 more in cash flow each month and increasing the CoC ROI.Would very much appreciate it if somebody could try to find holes in my plan.

The most usual is using comps that aren’t really comparable, and not making enough of an adjustment to reflect the difference.If, after 12 months of ownership you have another appraisal performed, and this appraisal confirms the value as concluded by the former appraisal, then you may be able to monetize the equity.

Meaning if a house is selling at 300k but the house is only with 250k, the deal would be reduced to reflect market value?

If there is a change of ownership where the original owner of the policy is no longer the majority owner, then you need to cancel the old policy and issue a new policy reflecting the new ownership interest. 

In my area, the data does not reflect the media craziness, mostly business as usual here. 

Prices are really just a reflection of the strength or weakness of the dollar's purchasing powerJust a thought...

Primary question - Are you doing calculations based on REAL ACTUAL operating info reflecting real rents and actual expenses for a recent period like the past year?

. $1B resort, condos, restaurants ect will finally give a good reason to live in the area and prices will reflect.