There are very few instances where it is the same as the market value, and it is sometimes wildly different. 

It is much more of the wild west. 

I was working with one recording service that had great rates but was wildly unreliable (you get what you pay for?)

The construction could take much longer to complete, costs could increase, the market could experience a downturn by the time construction complete, wild fire are also a threat in this area..High end Malibu homes also take a while to sell and i could be stuck with a huge liability for months; this local markey is not really liquid Retrospectively am not really satisfied by either scenario; even though i'm glad i did it as i learnt a lot.I think a multifamily development in a gentrifying area would have yiedled much better.Multifamily properties appreciated above 10% in some part of los angeles this year, whereas the mountain areas where the lots are haven't really gone upGiven that 800k in equity could buy me a 3200k rental, i calculated that i could have yielded above 40% in cummulated gains and rental incomes each year, cash on cash, without doing anything but buying a low risk 8% real cap rate propertyMultifamily construction would have yielded way moreWhat is your opinion on this investment?

That seems wildly inappropriate and not within the authority of merely being under contract to buy a property.

This cat had all of its claws and was able to climb up door frames and walls, it was wild!

The money is definitely more expensive and can range wildly on rate and points.

Their plan is grand and it's wild to think that homes are selling for $15k today but in a couple of years, there will be $200k+ homes.

Examples: properties in areas zoned exclusively for STRs, purpose-built STRs, prime location relative to attractions, views, unique architecture, and other amenities that are time and capital intensive to replicate like indoor pools, etc… That average looking house in an average location you’re looking at on Zillow might cashflow today at an affordable price, but it is wildly vulnerable tomorrow.

You are foraging into the wild.