I dont think anyone outside of the engineers know much about how the algorithm for that works.

The companies who are moving large volume of stocks have computers trading of an algorithm.

I started taking an active interest in learning to evaluate ROI and cash flow, and creating my own exotic spreadsheets and algorithms laying out my own personal strategies. 

I won’t get into too many details here, but the reality is hedge funds spend millions per year buying algorithms that exploit a market inefficiency that only exists for a couple of weeks and then it’s gone.

It can be based on the ARV like you're thinking, actual LTV (as-is), or some other algorithm(s) specific to a lender's risk tolerance, experience, knowledge, etc.

I disagree with Nancy, there are a number of reasons an owner would sell at a price that meets your algorithm.

To answer your questions:We have an algorithm so we can run addresses and offer a certain amount above your listed rent every month, guaranteed.We have a waitlist of long-term tenants who want to rent with us and get guaranteed discounted rent for managing the Airbnb.We can work with any type of property for the Loftium Lease, and we always combine a long-term tenant with Airbnb guests so there's always an onsite host.  

<-- I've heard rumors that FICO is catching on and this is becoming less effective, but FICO treats their exact algorithm as a trade secret so who knows. 

Do not rely on automated valuations for quite a number of reasons, not the least of which that the valuation algorithms can't "see" inside pictures for the condition of the house. 

If not, then there may be a bug in the BP algorithm.