Quote from @Daniel Araque: I'm writing this in hopes that maybe Tardus leadership adjusts this....

Bringing better comps to the appraiser’s attention is definitely worth a shot and can sometimes lead to adjustments.

I generated the list by combining Zillow's smooth, seasonally adjusted home value dataset (ZHVI) with their rent index (ZORI) for metro areas.

So for the Comps you make to arrive at your ARV something that jumped out at me was the adjustments.

Adjusted for inflation, the prices of homes in a desirable location appreciate more than average wages. 

Quote from @Carl Rowles: When you insure a SFH rental property, do you try to adjust and of the coverage amounts?

Whether the balloon or the adjusted rate approach, the borrower is incentivized to refinance.

Than maybe with adjusting the vocabulary to REALIZED performance and UNREALIZED performance, we can start correcting understandings. 

These LOCs are typically interest only and adjustable rate, which of course is planned for, again with the equity and the cash flow of the investment, it shouldnt be a problem to at the very least break even, even in the worst of scenarios.

Excluding the periods of “tulip bulb” irrational exuberance, a property must produce enough of a risk adjusted return to satisfy both the ROI demands of the “limited partners”, and the income/time requirements of the sponsor.