You may be able to offer cash for keys.Don't forget that the starting prices in online auctions are usually artificially low to attract bidders.

In such cases, the veteran's 0% down purchasing power is indeed artificially constrained by the loan limits. 

In that instance, if the cap rate stays the same, the calculated value will be artificially lower than the market value so how did you model or bake-in this market appreciation into say a 5 or 10 yr model?

Tell Lars that Chris Mason sent you.http://larsghanssoncpa.com/ When his office and mine get conspiratorial with the goal of boosing purchasing power of a self employed person a tax filing or two out because someone's purchasing power is artificially constrained by stupid mortgage guidelines, amazing things happen.

We've gone through several years where both variables (T-Bills and LIBOR) have been artificially driven lower by never before seen Quantitative Easing and bank-friendly Federal Reserve policy.

If the deal is for $140k all cash (and you get $40k right back), you're probably OK. but any half-wit loan officer the tenant uses will see right through what you did, which is to artificially bump up the market history of the property to influence the appraisal and mortgage size the tenant is applying for.

The answer is because interest rates had been artificially low for several years and when interest rates started to rise the loans adjusted, increasing the mortgage payments, making those payments unaffordable for a large amount of borrowers,  regardless of whether or not they were subprime, granted subprime was a huge part of the problem.  

Remember our current interest rate environment is artificial and potentially unsustainable.  

To paraphrase Wikipedia, "that there are no "true" or "natural" grassroots, but rather "fake" or "artificial" support".  

Very cool to see technology advancing, but I can't help but think about movies like "Terminator" and "I, Robot" when I see artificial intelligence being implemented.