In the example, the $5k added was the forced appreciation, but with an expected sale price using the same market cap rate for easier math and to stay on point with the objective of recognizing the true cap rate of a property against the maket cap.

Very true!

So, properties in active market locations/subdivisions, will be very accurate, while outlying, more rural properties may be off by a mile.I echo previous comments regarding your use of a buyer's agent, but with a slightly different perspective:  It is true that listing agents negotiate and define their success commissions in advance with their seller clients. 

Fortunately, there is a way to figure out what the approximate true value of the property is without hiring an appraiser.

A true modular home COMPs no different then a stick build.

Purchase price: $55,000 Cash invested: $62,000While this was not my first property, this property was my first true flip.

Saving money and living under your means is the name of the game though and I think that holds true though your entire REI journey.

Make sure to advertise in all the available channels you can find so you can perform a true test.

Investment Info:
Single-family residence buy & hold investment.

Purchase price: $126,000

Cash invested: $20,000

Mother-In-Law Suite

What made you interested in investing in this type of deal...

Knowing how often the folks at the finance office jack stuff up, it would be a miracle if they could calculate your per diem correctly at all, let alone actually dig through public records to find some hidden needle in a haystack.