My experience is that investors will analyze the financial strength of the Tenant, length of the lease, and other pertinent lease terms to justify value.

As federal regulations created more separation between lender and appraiser to create a truly arms length evaluation protecting the borrower ( really ready that protecting the bank) it created the all so common but unwelcome "unintended consequence".  

I think we are all approaching the problem that there is a lease in place and the tenants have a right to occupy for the length of the lease. 

If you are going to stop by the project site a lot and are apt to make changes on the fly - this usually extends the length of the project, which many times increases cost.  

I look for sponsor's track record first and foremost and for the length of that track record.Sponsor's willingness to communicate and educate investors is also crucial. 

Length of credit history - 15%4.  

The market is colder, there have only been three sales of comparable properties in the last year so its a bit harder to confidently estimate the value of the property. in addition, the market is actually depreciating, but if i had to guess, i'd value it at about 230-250k. the owner wants 236k for both triplexes which are fully occupied with tenants that have leases up to about a year in length, but with the rental rates already above average, ($500/per month per unit) , its unlikely that i'll be able to comfortably build any cash flow in by quickly raising rent or improving the property without first driving a hard bargain OR going for a lease purchase, and offering closer to whats expected while receiving the sellers financing.

Can I use the cost incurred as a onetime expense for 2012 or should I amortize over the length of the new loan.

A warranty deed exposes you to some liability if you miss some kind of encumbrance on the property down the line (even years and years away), but a quitclaim deed does not give the buyer any recourse if title, as conveyed, was flawed.A standard arms-length transaction involves a title search and the execution of a warranty deed.

Anyone know how to get around that or what finance companies don't care about the length of time a seller owns the houses?