For hands on investors looking to maximize gains and growth, the 1031 is inferior to the cash out refi model.

So, in smaller markets perhaps they use inferior/cheaper software.

Because using QRP money negates the great tax benefits of real estate investments.Unfortunately, many people waste their time with inferior tax mitigation strategies because they believe QRPs are the best option.

Right now we are looking at listing right at comp price or maybe slightly below if it's obviously inferior in some ways. 

The best way to rebut an appraisal is with facts. providing more appropriate comps, explaining (factually) why they are more appropriate and why the comps utilized are inferior.

The responsibility falls on you if you purchase low quality, inferior products; or products not designed for the application you are planning.

There are SFR rentals that compete, but generally we see those are either highly inferior older homes, or larger homes comparable with our design, that rent for $3,500 per month and above. 

Comps 10 miles away don't work in most cases.If they are superior--adjust down for what is superior (pool, view, etc).If they are inferior--adjust them up to what yours has that they don't (pool, location, condition, etc).

But in general terms--with a  purchase at the foreclosure auction, the property is still subject to inferior liens, so yes, you still have to pay a second lien or negotiate it away.

Even if you go with that option it needs to make sense on paper (Be a bigger home, closer to work, etc... something that makes the old property inferior to the new).