This is a unique situation where something is being asked for "out of sequence".

There are plenty of markets in other states that allow more cash flow in comparison to NY.

mindy i am in houston for the last 8 years. i can tell you this much... pre-harvey we had arguably some of the most overvalued real estate... post harvey we will see a lot of communities simply not get rebuilt.there is actually a lot of rental capacity in houston so i dont think its a similar situation to what NOLA had and comparisons in recent history are going to be hard to find.in the short term , people are still gutting houses... actually theres a shortage of drywall in some of the suburbslabor is also in shortage... but i think theres a lot of people laid off from oil and gas from the last downturn that will welcome the work with open arms.... but the problem is some of these floodway communitites simply wont come back.there is no good solution to the problem houston has at this point without MASSIVE infrastructure development and buying properties in floodways with eminent domain (which i am sure many will be happy to have happen to their flooded house)ive personally talked to 3 diff people that said they are planning on taking insurance money  and fire selling house the first chance they get.  

You didn't share much on that, so this is a simple apples to apples comparison just for investment purposes.

Properties and homes are still relatively expensive in comparison to better towns

There is not really a great comparison. 

They did a drive-by and when I looked at the appraisal it clearly stated the comps that they were using stated they had knowledge of the inside, which is not a true comparison .  

I figure they have such thin margins in this competitive environment they will probably founder.I think I might just do another passive investment in an apartment syndicaiton, since that is only 7% of my portfolio at present.apt. syndication and  30 day call notes are not like kind comparisons on risk / reward  just sayin.. one your in and have zero control and the other you can redeem with 30 day notice..  

I haven’t done that side by side comparison, but would love someone to tell me if that’s true.

To me that is a good deal because you have reduced your housing expense to zero, you can evaluate the property as if it were fully tenant occupied for comparison purposes