I would work with the lender and put together a well thought out Reconsideration of Value (ROV) with better comps and detailed reasoning to justify the higher ARV.There are lenders that don't do appraisals for hard money loans so you could try that in the future to avoid these situations. 

Wholesaling as we know it is on its way out take some years but these laws and disclosures are sweeping the nation no doubt.

out of curiousity, what brought you to invest with them?

I would then make him my renter and kick the can down the road to figure out how to gift it to him.It seems as if the 1031 exchange fees might be a wash with the taxes? 

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

Renting it out now could help cover the mortgage, and you’d benefit from any appreciation over the next two years.

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

I will seek out the answers to those questions as I get into this field. 

He is not financially independent, but I bet he's living the life you dream of.Figure out what you really want, then start building a plan to get there.

Cap-ex was needed for:* Original 1960s kitchen, appliances out of order* Original 1960s Pepto Bismol colored tiles in the bathroom* Tobacco and marijuana stains/odor in every room* Stained carpet covering damaged hardwood* Broken side door from forced entry by police* Zero recessed lighting with 3 layers of blinds on every window* Lots of trash in the basement both on the floor and mounted to the joists overheadCheck out the Zillow listing at: https://www.zillow.com/homes/119-Jasper-Pl-Alexandria,-VA-22...What made you interested in investing in this type of deal?