***********************So, basically, your job is to get the appraiser to understand why the house was sold below market value when you purchased it, and “gently” remind them why it is now selling AT market value (mv).Best way to do that is to compare your purchase transaction with the mv definition and clearly explain why your purchase doesn’t meet that definition.Some Examples : 1) Borrower was atypically motivated to sell due to (fill in factors here. i.e. already purchased another home, moving out of state, inherited the house and wanted to quickly liquidate it, etc.)2) Maybe the house wasn’t offered on the “competitive and open market,” and sold off-market or with very low days on market, causing a decreased exposure to potential buyers.

This reduces the buying power of the equity because it decreases the relationship between the equity (what the property is actually costing you), and the PV (which is what you are actually buying). 

I'm seeing DOM go up, but individual sellers are still holding out for what they think they should get.I’ve been buying in the KC market and definitely seeing properties on the market longer and now seeing price decreases.

It will drive up the cost of goods and services, at the same time decreasing the tax base.

I assume this affects future cash flows generated, although bonus depreciation decreases 20% per year going forward.

He says he has no problem if he were to live in this building.My problem, if the population is decreasing steadily, it may become tough to find tenants and that could lead to decreasing rents and then loss of NOI.My agent is telling my own only course is to do inspection and if I do not like results, get out.

In the downturn of 2008-2009 our rents did decrease some but we had no trouble cash flowing our properties each month.

A little decrease in cashflow is okay because you are going to take your 20k and buy another property there by increasing your cashflow above your original starting place.This will only work if you can pull enough out of your existing properties to buy another one. 

They are intended to decrease the surrounding population.

At 62 years of age with my investment portfolio decreasing by 38% in the last year, I was really counting on REI to become a prominent part of my overall plan to put me on a stable platform to generate significant income for my semi retirement and supplement everything else.My wife was against my investment in this program but I forcefully overrode her warnings and went on anyway and now I face the reality that she was right and I never should have done this in the first place.