It's factored into the cash-on-cash return and increases it so it makes the returns look much better and the property more attractive in certain ways.What is this principal reduction?

Banks have a vested interest in getting lowball appraisals in BRRRR situations, and if appraisers want to keep working for their main clients, those banks, they quickly learn to be well-versed in the art of giving the banks what they want, money-making lowball appraisals that screw you, the investor, and take money out of your pocket.An appraiser is going to come in with a point-and-shoot digital camera, or, in the worst case, use her/his phone.

Think the 500 dollar range would attract maybe some not so awesome tenants and we will be living with these people so hopefully all of our tenants are quiet little angels hahah. 

With the other property, my lender never ordered an appraisal and now that closing is happening soon I'm freaking out.Can someone recommend an appraiser in Indianapolis who can quickly turnaround an appraisal report that I can use to make sure I'm not overpaying here?

Lesson 2: If it is attractive to owner-occupiers, they will outbid you. 

Often times, there are many good markets, but you also need to have the ability to jump on a deal quickly. 

Thanks for the feedback, I was looking into an older duplex property that needs some renovations in order to be capable of attracting a more upscale client base.  

That's usually a discounted price to attract buyers.Two, a shortsale means that the owner owes more on their mortgage, plus penalties and fees than the house is worth.

A quick glance at housing affordability in AustinMedian Household Income App (Forbes): $73,493 ($6,124/mos)Cost of Living (Forbes): 15% above nat'l avgMedian Home Cost (SFR-ABOR Stats): $302,250Assume 5% Down Payment Conventional Loan- 30 year amortization- $15,112.50 down pmt + any closing costs• Percentage of residents with less than $1,000 saved: 56%• https://www.gobankingrates.com/…/…/americans-savings-state/…- $287,137.50 amt financed- 4.375% interest rateHow the payment looks:PI= $1,433 mosIns= $105 mosTaxes= $458.33 mos (Assume $5,500/yr)HOA= $25 mos$2,021.3/mos PITIDTI’sHousing ratio= app 33% @ median income ($2021/$6124)FHA should be at 31% or less with Conv/VA/FHA being around the same although all have exceptions in placeTotal DTIThese hover between high 30%’s to manually underwritten total DTI’s in the 50’s or higher depending on the programs@ 45% Total DTI Ratio and assuming the above PITI pmt that gives a borrower approximately $734 per month in all other creditor debt (cars/cc/personal loans/etc)These numbers are not perfect but are rather a quick illustration of current housing affordability in Austin for Retail Buyers.Summary: Housing is becoming less and less affordable in the COA for end retail buyersAssuming increases in property taxes/insurance/interest rates on the horizon how does this affect us as investors?

We're a quick 5-7 minute uber into the city.