Local knowledge is essential! Our local teams have been operating in these same locations for years and know exactly how homes should be valued, as well as the realistic rents for specific properties and locations. Please also keep in mind the source of your information. In terms of "comps", if you're using zillow/trulia/redfin/realtor.com or some other online source for estimated market value, those are not evaluating true comps. Those sources have no way of telling the condition of the home or what rehab has been done. Many of the homes in these same areas are often sold to flippers below market value because of back taxes owed or work that needs to be put into the homes. That is why the bank requires a third-party appraisal to be done to the home, to make sure it is priced appropriately based on actual comps (in the same condition, similar metrics like sq ft, year built, renovations done, etc.). That will be your verification that the home is priced accurately according to actual comps; a licensed appraiser actually walks the home to give you a true determination of value. If, for some reason, the appraisal comes back low (which is very rare), we first want to ensure the appraisal has accurate information. Appraisers can make mistakes in terms of square footage, lot size, etc. that could affect value. In any case, if the appraisal comes in low, we can of course see what options we have in terms of adjusting pricing accordingly in order to make sure you are purchasing the home at its true market value. You always have the option to simply exit the contract or choose another home that better suits your needs, if you feel that is the best option for you. We want to be sure that you are confident about the home you are purchasing. We sell many homes every month to investors in all these areas, so if you ever decide to exit the property, you should be able to easily liquidate it to another investor within a timely manner. You will be building equity every year that you own the home simply through appreciation and debt pay down by the tenant. Not to mention that rents generally go up over time, allowing future returns to be better than what you are projecting today! Hopefully this all makes sense. Please let me know if you have any other questions on this.