Not only that but when you are in a portfolio loan and would like to for example sell one and break it out then most lenders will want to be paid back 120% of the balance attached to that piece of property back into the principle of the loan 

RA to the rescue ... of course these are extremes but it's about the principle... these are strategies that are not for everyone.

Sometimes the KISS Principle works - esp. for just 1 property. 

As a first time investor in a brand new state and city, we aren’t totally aware of certain laws but definitely want to do what makes the most financial sense as well as ethically sound decision.  

This is the golden principle for investing.

Quote from @Barrington Smith: Contractors that give free estimate in the Fort Lauderdale areaHey @Barrington Smith that’s going to be a somewhat tough task, and it comes back to basic principles of those who crush fields:-the guy who does great work often values his time a lot and won’t give a free estimate-the guy who is hurting for work often will.  

And at no fault of their own – cashflow is what they were SOLD on.Here's what I want you to understand about “buy and hold” residential real estate:Let’s use a single family home with a property value of $300,000Let’s use an initial loan amount of $240,000Let’s use an interest rate of 7.25%And I’m going to give you $150 of cash flow per monthUse a 5% appreciation amount for your propertyLet’s see what happens after 5 years:After 5 years…$150 of cash flow per month = $9,000Your mortgage has been paid down to $227,000 = $13,000Your property is now worth $382,000 = $82,000So that’s $9,000 of cash flow, $13,000 of principle buy down, and $82,000 of appreciation.

My lender who has decades of experience and has seen thousands of appraisals, said the 2nd one is so so far outside the appraisal standards and ethics and would never be accepted by any bank. 

To play into this matter, the answer is due to the free market and the principle of supply and demand (Carlos' point).

This won't go well as the listing agent has a relationship with the seller, and no matter how ethical the agent, the buyer will be at a big disadvantage.