I knew there was a shortage of inventory at the time and tried to capitalize off of that by listing it a little higher over the comps.

In January 2024 we were at the low in inventory with only 1648 homes for sale.

I’ve used seller financing as both a buyer and a seller and it can make a lot of sense in certain circumstances (for example I used it as a buyer when I reached the maximum number of conventional loans I could get, and I’ve used it as a seller to both increase my net proceeds (due to collecting interest as “the bank” in addition to the sales proceeds) and to lessen my capital gains tax hit by spreading it out over a few years).

We currently have a construction loan on the properties and we would like to refi to a more conventional loan.

Conventional or fha ? 

We purchased with a conventional loan, 10% down payment:Purchase Price: $405,000Closing/Fees/Misc: $12,500Repairs: $85,000ARV: $575,000I was hoping for rates to come down some in the next year and refinance out with a 75-80% LTV.

This method is particularly relevant if you're in a market with high rental demandI would like to know the appraiser who valued an ADU using income approach for a conventional loan.  

There was no market data indicating there was a market for $3K 3 BR rentals but that was merely because nobody ever supplied the market with the inventory.

@Shelley AustinWhile it sounds great - if they cannot qualify for conventional financing will they be successful and pay you?

With inventory tightening and competition increasing, what strategies have been most effective for sourcing truly undervalued properties?