Owner actually split water a month ago anticipating holding the property for a long time.

Good morning, Ok that took a bit longer than anticipated, but I finally found a good tenant.

This in anticipation that those areas will be the spillover beneficiaries of tech growth.

We need a closer look, but anticipate ~$15,000 rehab costs, ~$6,000 commission upon resale, and ~$2,000 holding and closing costs. 

I think you've got a few people torqued because you're trying to stick to a policy that you have which does or did not anticipate this type situation. 

Given the property and their experience with it and willingness to loan to these types of projects I anticipate 15% down required and terms near 5% at 20 years.

In this model you are anticipating market appreciation to build wealth, which over the long haul is reliable. 

most recent sales with 1/2 mile in the last 3 months, then 1 mil within 6 months etc etc and go out and out till you get desired comps.If you're an appraiser you'll have to only use comps that have "comparable," features so it depends a lot on the loan program.If you're anticipating certain loan programs then you have to underwriter your appraisal criteria similar to your intended buyer demographic.As an example, If I knew the area was a first timer area and the subject property was a townhome then I'll know I have to have comps in the same project  (ideally) and if I dont I would have to obtain similar projects with similar amenties, features, HOA dues, etc so that I have comparable properties to evaluate.The process above is similar for commercial except you're using NOI, cap rates, and your adjusting comps based on their income value to the market place.

“Generally” speaking The areas with 3/1 homes would tend to be more established and older home would anticipate more damage due to the building codes etc when constructed.

Is it wise to buy in an area like this and anticipate rising rents will cover marginal returns at face value (i.e accept near break even noi for the first year)?