When you see same comps for same size properties in a tight area, you have what you're looking for...a micro-market.Now, don't argue with it, or rationalize it. 

Is that a rational concern?  

TRIC along with initiatives by EDAWN and UNR conintue to move companies to Northern Nevada, Reno and surrounding areasUSA Parkway will connect to US 50 by the end of the yearHousing is in sort supply in both rental and purchase markets in all but the upper end price rangeThe southeast connector is scheduled for completion by the end of the yearLending is now much more rational than in the 2000's, reducing the risk of catastrophic failures we saw before.  

Hi Linda, Thanks for your reply, I am asking about my friend, he was tenant, he lost the case, Actually landlord didn't return security mentioning different damages which were not significant in ration of charges/security, so my friend has filed for security return.just before the court session, defense(landlord) lawyer asked him to withdraw the case , lawyer told him(friend, tenant) that if he(tenant) doesn't gets win then his client(landlord) will demand for lawyer's money from my friend, because it's mentioned in lease.Judge in his judgement said that charges are justified so case is dismissed, now my friend is wondering when and how landlord will claim his lawyer's charge. will he open a new case...

Of course I'm only rationalizing this now, after the fact.

I'm curious about your rational for this business model.  2nd liens to consumers have so many issues.

I intend to have everything go through my LLC so I dont have to use my personal debt to income ration, hence the commercial loan.  

Buy & hold.•Use leverage to buy higher priced (50-150k) properties for cash flow and appreciation.•Trust deed investing.•Hard / Private money Lending.•Multi-family properties.•REIT's.•Partner with local investors.•Use cash or leverage to buy "Turn key" Rental Properties.•Throw it all under a mattress, buy gold bars, or invest in survival rations and a good bunker.•Combination of the above.So, what would you do?

Their rational was that the bank had previously accepted $245k so the price shouldn't be an issue.

I can’t tell you how many people I know who are new to this, and wanted in so bad they would rationalize paying any price just to play the game.