If you are buying the property for 1.7MM the bank will lend based on the sales price OR the appraised value, whichever is lower(it’s referred to as Loan to Cost or Loan to Value). You couldn’t use the 2.5MM valuation as the basis for the LTV. Most banks will require you to have AT LEAST 12 months of ownership (with many wanting 36 months) to use the appraised value instead of the cost (price plus rehab ).
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