My theory is that millennial buyers are not inclined to want to landlord and, hence, the duplex market is weighted heavily toward investors who are too canny to overpay because of emotional response to a property.   

You get older the extra million doesn't carry the same weight as an extra year of quality life left to live.

There are still a lot of "granny houses" out there but that is rapidly changing, especially as hosts who paid too much for their STRs or are in crowded markets are trying to pivot to the MTR market to generate something.

When an appraiser appraises the property, they will do all three and weight them accordingly based on the type of property and strength of the data.

I’m also enjoying the process of running a small business.What’s interesting is how rapidly the Cabo corridor has developed and how few oceanfront SFH there are now.

To maintain market rents with rapid appreciation you need a turn over every 2-3 years at max. otherwise you will have negative cash flow.Expand your search area and target multi plex properties.

No previous evictions is my top priority, then income verification, then score and weight different negatives less/more(old doctor bill, student loans, etc)... best of luck!

Lastly, combine those into a weighted average cap rate for the entire project.   

Quote from @Lance Gordon: Every deal is negotiated differently.If the deal were impossible without their cash, then it carries more weight than a deal where you are partnering together out of convenience or friendship.If you want to be fair, everyone should be paid according to what they put in.

For me, forcing cash flow in a market with rapid appreciation is the best way to hold onto the property and reap the benefits of the equity over the long-term.