Would you pay more than the appraised value for a STR?
I'm the seller, and I have a STR that makes 160k+ gross income/year, but will likely only appraise around 350k-400k as a residential property. I listed it for 800k and did immediately receive 2 full price offers and a lot of additional interest, however, I'm worried the deal will fall through after the appraisal.
How do people sell cash producing properties that won't appraise? Are investors willing to pay the difference? Do I need to list it as a commercial property or something and have the buyer get a commercial loan and appraisal? Do I need a cash buyer? This is a unique property, not something that can be easily replicated. There are no comps.
I understand that lenders have to be able to sell the home if gets foreclosed on and stops being rented as a STR. As a seller though, I'd be giving the property away at the appraised value with the income it produces. Not to mention it's been fully remodeled and comes fully furnished.
Has anyone dealt with something similar? I'd appreciate any insight!