The first few times it might feel awkward, but you don't need to justify your decision to the tenants.

I should mention that I'm buying these properties as rentals, but the cash flow scenario would require $1200+ per month, which doesn't seem justified by these 3/2 homes in Crown Hill.

Fees should be clearly stated in writing, easy to understand, and justifiable.

I don’t do enough deals to justify a large fee. 

I think to get into a long term mortgage I'd be at 7-8% or so....depending on how I got there, either by cash out refi with DSCR loan or a more standard path may be a little lower but harder to do and justify. 

Generally you'd end up with a Tenant In Common arrangement, which from the syndicator's perspective would only be justified for a larger capital investment.

Unfortunately there is no straight forward way for an appraiser to give you that added value unless there is a similar 3/2 comp that justifies a higher price.

I don't think I can justify a 1mil investment home but 700K +/- 50-100k won't be the end of the world if the numbers make sense. 

For a cash out refi you generally can only pull out 75% of the equity which doesn't really leave you any room - definitely not enough room to justify the closing costs unless perhaps your dropping your interest rate enough that its worthwhile anyway.

PlanFinder AI looked promising, but it’s an add-in to a pretty costly software and I don’t do the volume to justify the expense.