This was a purchase transaction for a borrower who was in a 1031 exchange and was moving up from investing in single family type properties to apartments buildings. He was referred to us by the listing agents.
The client apparently had some troubles in locating an upleg property for his exchange so by the time we received the lead he had already burned through his exchange dates. The property appraised at value but the appraisers forecast on market rents came in lower than the actual rents being collected.
The deal was almost blown due to the appraisers forecast of market rents. However, we were able to rebuttle the appraisers opinion of market rents, and with some success. Insted of a 100k cut in loan dollars it was trimed to a15K cut in loan dollars. Borrower was okay with this, and we closed on time.