From a real estate/landlord perspective what does this do besides take money out of my pocket?

Sometimes this works to your advantage and in other instances it makes these properties obsolete. 

I look forward to engaging and learning a lot from this community.God Bless! 

I am optimistic that things might improve with this change, but I would not pay again just to find out.

This is assuming there is no personal use of the daylight basement, and it is 100% business use as an STR. 

Most of the prospects offering this to us, disappear when we tell them they still have to go through our full application & screening process. - We almost feel sorry for the foolish/naive DIY landlord that inevitably falls for their sob story and accepts them.We have had 2-3 that have gone through our process and so we accepted their multi-month payment.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Hey Tyler,This sounds like an interesting opportunity!

I’m looking forward to learning and building relationships within this space and beyond.I’m so excited to start this new journey!

Hello Dalton, Is this an appraisal done before the work was completed where you gave them the scope of work and they are giving you the ARV appraisal?