I see at least two possible unfavorable outcomes.1.

This can be straightforward but may not be ideal if market conditions are unfavorable or if there are significant transaction costs.Partitioning the Assets: If there are multiple properties, you could divide them between yourselves in a manner that reflects the 50/50 ownership.

Otherwise, if their appraisals are consistently unfavorable, clients might choose to go elsewhere.

I have a great lender locally that is a pleasure to work with, but ran into a situation recently that involved an unfavorable appraisal.

Before my time, but PA didn’t have a statute until the mid 90’s and had unfavorable tax treatment for them as well. 

However, we have discovered that this may result in unfavorable tax implications for us in Europe.

Lending is better when you already established your equity.3) unfavorable tax treatment compared to rental income

You could refinance, but you would be left with unfavorable terms given the higher rates and it sounds like it will be an investment loan, not a primary loan. 

Additionally, other lenders are offering either a 70% LTV or unfavorable rates at 80%.

Given the unfavorable analysis of population within 3 / 5mile radius, the numbers were too appealing.Lastly, the current owner is valuating the asset on pro-forma basis and I know for a fact with needed capex and upgrades, I will be overpaying.