The after repair value is determined by finding a comparable property that sold in the last 6 months, in the neighborhood where your subject property is located.

As a fellow investor and a former insurance agent (many moons ago when I was young and foolish lol) I can shed some light on the subject.

@Zachary Scott IMO, I believe this could be pretty subjective but I think it would depend on your comfort level and risk avoidance regarding certain things, e.g. rancher on a waterfront lagoon in terms of flooding issues, age of the home and potential termite issues resulting in structural damage, roof condition and what could be underneath of it from leaks.

It can only be deducted if used on the same subject property for capital improvements, which you say you don't plan. 

I'm sure you could include language in your rental agreement that holds the subject responsible for repairs for damage liable.

On September 4, our ground-level unit was subject to an immense amount of water damage from a burst hot water heater from the unit above us.

So few 'A' lenders will approve a NR for a refinance / take-out equity for a subject rental and only when a key criterion is met. 

And because you're in Texas, you should definitely branch out to Oklahoma.However, and this really isn't directed at you but rather those in states like California, I think that too frequently people focus on that too much to the point that they miss killer deals everywhere.I live in San Diego and sure, California seems to be tough, but I don't think it's nearly as tough as people think it is.For the most part, if landlords treat tenants in California fairly -- which every tenant should be treated fairly no matter where they live -- they're not going to face too many problems.Even at the height of COVID, it was the slumlords that were having trouble collecting rent.

But if I tell any broker or seller that my offer subject to financing, I dont think it will be taken seriously.

You can also continuously pursue other creative strategies, like subject to or seller financing and taking out the bank altogether.