If it's B, then how would we go about adjusting her original $800 last month's rent for the new $50 YoY rent increase?

Although these are most commonly found in loans offered to borrowers with poor credit scores, these days they are being included in more loans marketed to borrowers with strong credit, particularly the newer ARMs (Adjustable Rate Mortgage) with ultra-low payments.

@Kellie AlkayamI've noticed people tend to sell in the end if they are expecting to lose the property.You could either tell them that you need them to pay up to complete the deal and adjust your offer accordingly or you need to close before the auction date.You may also be able to try contacting the county and see if the parcel can be removed if you supply them with a signed contract.Depending on redemption rights etc you may be able to place a lien sighting the contract to purchase if you can't stop the auction or have the ability to close.

ARV should be around 1.9mil with the adjusted comps for more accuracyYou can infact go the 2.4 mil range but from what multiple people say it can et a bit riskier.

However doing this on any property that you have previously filed taxes on using the straight-line 27.5 year depreciation method, would require you to make adjustments, including filing a form 3115 which all may be much more complicated than Anthony made it sound to be.

My plan is to seek out the realtor for a private showing and adjust my estimates for rehab.

Your FICO can be raised simply by adjusting your balances to around 30-40%.

However, after considering business expenses (which I try obv put as much as possible), SS Tax, and a standard deduction, it brings my adjusted gross income down by quite a bit where it would be hard to qualify for a mortgage of 300K-500K.

It is a gamble but adjust your price and it can be a winner.

@Kevin S.Thanks for the quick response, I know it's a bad excuse but mainly because we didn't think to do this in advance and the seller is very hands off, for these reasons I don't feel confident the seller would comply.We are now late in the game, we have adjusted the price due to findings, and signed a new contract twice, and the seller basically doesn't do anything with the property and just wants to sell right away.