Exit is now looking like $800k because of massive appreciation.

If it were a long time rental, I would have installed much cheaper, one dimensional shingles.There is no cash flow rental in my book that would require such an expensive shingle.I just put on 50 year presidential composition shingles on a $1.3M exit value home and the cost was $13k ,including the seamless gutters.

While I didn't read the entire article, I imagine that whatever was ultimately proposed as an optimal bidding strategy was the same as following Nash equilibrium, another concept you might want to familiarize yourself with from game theory.Now, the problem with using Nash equilibrium -- or any other optimal bidding strategy -- in a real estate auction is that the item being purchased doesn't necessary have a commonly agreed discreet value (what the article calls a "common value model").Instead, the participants in a real estate auction may have very different perceived values of the properties up for sale, depending on what their exit strategy for the property is.

In terms of appraisals, any exit strategy employed by our borrowers will depend upon a future appraisal, so we believe it is wise for both us a lender and for the borrower to have an appraiser offer an opinion of value on the front end of the project subject to the scope of the project.Furthermore, given many of our notes are financed by whole note investors, the investor, who has built trust in our team and our results, also has piece of mind knowing that someone licensed as an appraiser has offered a valuation independent of our process.That said, nothing trumps our gut, and we always reserve the right to adjust a value up or down based on our experience and our understanding of the market.

Then wait til the health department or fire department makes new requirements, building a fence around your trash container, putting up fire exit light and exterior (in the open stairwell) fire extinguishers, and don't forget the replacement of the extinguishers after kids steal them as the must be accessable!

I have considered this exit as a means of liquidating a few select properties of my own.

I work with clients pulling money out of banks and also exiting the stock market to invest in commercial real estate.Many had the money parked while they figured out when the debt service rates and the the real estate market would bottom.Your jobs annual income and time to retirement and cash to deploy and how hands on you want to be for your return will determine avenues you could pursue.This is really investment planning and you need to do this FIRST before buying stuff and going "oh crap" this isn't going to meet my goals after all.

As others have mentioned, hard money is a good tool to have, but I think it's always a good idea to have multiple exit strategies, and paying such a high interest rate makes it difficult to carry a property if you're unable to sell within 6 months or so.

It sounds like the property has peaked your interest but I always make sure that emotions get checked in at the door and verify that the numbers and my exit strategy makes sense.Will the properties cash flow?

My loan broker told me that many lenders exit from the apt lending with loan amount lower than half or one Million.