(wiki gave me this little gem, mostly because it was the first thing that popped up when you google it.)

Most banks get a Brokerage Price Opinion for what the property is worth and you have to show the hidden flaws in the arguement, hidden repairs, and dangers of the house and how difficult it will be to sell it.In all honesty this conversation can take a long time I had some training on it that was 10 hours long. 

Having to this made me cringe a little, the original strategy on the project was to BRRRR, but due to some hidden costs that popped up, renting it out no longer looked like a solid return.

I had one tenant roll out and another one try to roll in immediately and there were a ton of hidden problems that were not known to me. 

A lot of people say its a tough market to be in, but personally, I think our duplexes and multiplexes are our golden gems. 

If you need anything worked on that's hidden behind walls, floor or ceiling or the roof, it's going to get expensive quite fast.

However, with the $5K fee charged upfront, one must look at the payback period and add in the lost NPV that $5K has hidden inside (ala lost opportunity costs).

There are always hidden items to repair.

The rub is, once there is a judgement, the case is removed - forever hidden from future landlords doing their due diligence. 

Thank you Brandon, David, and BP for this gem.