I decided to keep the property because once I decided that I would not be able to take the net gains from the sale and invest into anything with comparable returns. 

Appraisals use comparable sales within the last 6 months.

In nice areas such as Gilroy, CA, you may find that the property appreciates more year-over-year and that vacancies are lower compared to some OOS properties (but never rely just on passive appreciation). 

@Javaras Thomas, for a 5+ units the ARV is based on income not on comparable sales.What is a typical cap rate for a property like that in your market.

Both and compare.

Compare your findings and choose the one that aligns with your goals and values.

Reach out to get a second quote and check your options comparing apples to apples. 

I recommend taking a good look at each of the units and compare their condition/amenities to comps close by to get an accurate rental rate.For example: I purchased two 4-plex properties in N.

If you're spending the time and money renovating a home, don't skimp out on things that don't cost that much compared to the rest of the rehab.

So I've been analyzing every deal comparing the loan options between 10% down (Primary Residents) vs 25% down (Investment property).