It isn't necessarily fair market value since the figure isn't something that is tested on the open market.

My ultimate goal is passive income.ThanksSam

I think you do have to compare the rates, closing costs, and ultimate mortgage figures in the end calculations.

We ultimately BRRRR'd that house in 3 months to get him his money back, and a house with $0 out of pocket (light bulb!). 

I ultimately want to utilize BRRRR as my vehicle, but I have very little of my own money. 

From those calls, you will have learned what your competition is related to lot rent, the sale of homes, how many POH they have, and what incentives you may have to offer as you sell homes.Next, you can advertise a home for sale yourself as a "test ad".

So, if it can pass the rigorous stress test of the bank and the state does not reassess, it could be a home run.states are trying to limit the use of this loophole so it is getting harder to use.

Have you tested this before rolling it out?

The lender you use for your pre-approval does not need to be the lender you ultimately close with.You should also connect with a Philly realtor who has house hacking/multi unit experience.

Your "quick" test underwriting isn't too far off the mark.