So, within 90 days they are attempting to hedge against perceived losses under tactics employed in the past by others in the RE market.

Great way to add perceived value.

If you would buy it again at a 10% discount to market price today, then maybe the transaction costs of selling the house outweigh the perceived benefit of holding onto it. ..or maybe you just don't want to get rid of it because you used to live there!!

I usually try to get 700-900/mo rents for every 10-25k that I spend on a property but I know this is not possible in all markets and there is probably a higher level of perceived risk associated with such properties.

If not your perceived equity value may be off.

They want to be perceived as fierce and mean.

Many factors play into determining value, not many comps would have such a facility, the style as adapted to the home is considered, the functional utility as a residence may be less as well.I'd first call your zoning people and see if 5 or 6 kids requires a zoning variance.Having daycare services or other business activities in a residence is possible with conventional loans, but you can cross the line depending on the perceived liabilities of a business, any significant modifications to a property, public access and other aspects can cause financing issues.

Which is why cops don't deal with anything that could be perceived as a civil matter.

For Example: a syndicated real estate may be perceived as less volitile than common equity investments, less risky than a selected private lending deal, and/or having better returns than a REIT or bond investment.

They are happy with this investment.Part of it is perceived stable long term value and appreciation in Coastal CA.