Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

We discovered problems that required a lot of work and significantly reduced the property’s value, forcing me to lower the price.

Should I wait for Spring for greater inventory, or for lower rates to see if cashflow improves?

Not only will you not be able to renegotiate after getting the approval, but documentation of condition issues will help you to get a lower appraisal to begin with.Be prepared to move fast after the approval letter is issued.

Typically, the adjustments I see on appraisals for basements are more flat rate adjustments. 10k is usually the number I've seen.What stinks is that there are a couple of model types that have below grade space where the builder, I'm sure, was trying to lower the taxes by having it below grade so the county wouldn't count that space in the assessment.

I think you'll be hard pressed to get an ARV of $140k IMO...I'd expect something around $115k or lower.

the midwest has lower price points than other areas of the US, sure, but it also comes with its own challenges - for example, very old housing stock, lots of deferred maintenance, and tremendous demand for the best properties."

My view is there is more protection on a wrap than a sub to and with the right disclosures and underwriting can be an alternative option. 

.- Investors get access to real estate cash flow with lower costs and no landlord responsibilities.- The whole process is simplified—no co-ownership legal headaches.I’m curious about the pros and cons of something like this.

From my understanding, it might be more advantageous to refinance as a rental property at a lower LTV with income from two units, rather than as owner-occupied at a higher LTV with only one rental income considered.