The bank underwriter just needs to be able to justify such a huge increase in the purchase/sale price.

It is to encourage investors who have the cash to flip and increase the value of these neighborhoods.

It is definitely not the most favorable market for long-term buy-and-hold properties with attractive rates of return.I've been investing out of state since 2003.

Only the most desperate renters would probably agree to live there so the price of the property would have to be dirt cheap and cost you as little money as possible in the rehab to make it worth the effort.Your gambling that the surrounding area will be gentrified in the next few years and increase the property values.If this was in Southern California I would say yes absolutely but,the ATL may be a little harder to wait for unless the population booms there in the next 5 years.

My long term real estate goal is to purchase rental properties that cash flow and create passive income that I can use to roll back into my investments and increase my portfolio. 

It seems to me like an easy 3% ish percent equity gain or a way to reduce the loan a little and increase cash flow a bit for almost nothing, that's my thought any way.  

The school ratings and low crime rate is what attracted us to the Sherwood area.We made an offer on the house originally to be the house that we live in.

I joined this community to learn about real estate but more specifically how I can use real estate to passively increase my net worth.

Your's will have to be re calculated and increased accordingly to positively impact your ROI and cap rate.This is where most MHP investors fall far short of the mark.

I would go for the 3rd unit because you're going to be increasing your income and cashflow plus long term you'll have increased the value of the property by X amount of dollars which you could then apply to another property or toward those loans.