That exercise might yield a value higher than $318K based on the $395K property, but there should be at least 2 other comps included which could pull the value down.The reality is that appraisers will compare properties based on how they look on paper (s/f, unit count, beds, baths, stories, parking, etc).  

I finally got the financing right and now it performs well. 5 years ago I refinanced and put in the 20% down payment that would normally be required.

Since it was a rental, the bank is not going to look at that the same way.Self-employment puts another spin on things and is sometimes difficult to finance.You definitely need a mortgage broker to help you as the option-exercise time period is usually a window and doesn't last forever.  

If the property is performing as expected, the tenants are good and consistently paying rent, and you are not over leveraged, then it is basically doing what you bought it to do and I wouldn't sell.

We invest in non-performing notes in OH and IN.

However, if you have another property that has enough equity in it to perform a cash out refi on it then most lenders should accept that form of creativity as we will.

What happens if you need to perform some plumbing repairs?

@Steve S. as an investor we need to have the ability to perform a fairly complete, but not extensive property inspection.

The 10% rules are good back-of-the napkin numbers if you don't have real data, but any TK provider worth your time will have actual numbers for you to look at based on their portfolio performance.

I recently spoke with a title attorney who told me something similar - evictions are typically performed in small claims court.