Currently though, this same method of "fudged" or "reationalized" valuation methods are used by both sellers and buyers, depending on whether they need the comps higher or lower, to justify a sale price. 

@Natalie Wells I am curious how investors are justifying these extremely low cap rates.

Any big value-add possibilities that can justify that going-in price with all the issues or is it all downside risk? 

Eventually, if I'm making enough money I can justify dropping the corporate gig which would free up a ton of time.

Depending on the amount of the EMD, taking that action may or may not be justifiable.

The current rents are below market value but the units could use a little freshening up to justify the rent increase.

To answer your first question, the law says you must acquire a property with the proceeds, so I think it would be tough to justify this.

I actually look at what I bring to the table, my time, knowledge, experience and value that fairly (but it is probably more than newbie, no offense) gives me my needed return, that is where the offer comes from, justified, honest and up front.So, most likely you did buy at market value but it may have been at a distressed value due to required deferred maintenance and repairs, but that isn't "under market value".

If there are any Airbnb investors who are familiar with the game, does the higher cashflow and ROI justify not finding “as good” of a deal than a 80% ARV deal.

But, I get your latter example of the refi's and looking at both deals to justify the leverage.