Maybe their guess at what the market value is is actually what the market value could potentially be if someone (the next owner) does the hard work of getting the rents up to that value.

I have a potential partner who is a long-time friend.

@Diana Teng there are a LOT of potential pitfalls:(So, it's vitaly important to not just find someone that you think you can trust because they tell you what you want to hear, but you find someone that their processes seem a good fit for what you want.EXAMPLE: we do BRRR Turnkeys for clients and take numerous vides we share with them - initial, worst state of any demo, when HVAC, plumbing, electrical update BEFORE walled in, before any major payouts and of course a final walk-thru video.One thing that's accurate from all the HGTV renovation/flip shows is that you should expect and plan for surprises!

Wish you the best.If I was you, first step is evaluating costs associated with doing MTR and comparing with potential rental income to see if it makes sense to do LTR or MTR.

With inventory expanding, it feels like there could be opportunities to secure deals, especially if the right cash flow potential is there. 

By emphasizing your qualifications as the basis for your decision, you steer clear of potential issues related to discrimination.

I would keep detailed records of my deals to include photos that I could use later when I am approaching a potential funding partner.

Quote from @Timothy Newsome: Hello, looking to potentially use a hard money lender in NJ.

There's a lot of timing to consider, and honestly, this potential first cost segregation will be a learning experience for us. 

Aims for a balance between cash flow and potential appreciation.