In Single-Family, comps rule the valuation game. Your property’s worth is primarily determined by what similar homes nearby have sold for, not necessarily what kind of income its producing. Even if you double rents and cut operating expenses in half, appraisers still look across the street for comparable sales — not at your P&L. Things to consider: · Rental performance can nudge your valuation if the buyer pool includes investors — especially in hot investor-driven markets. · However, that bump is soft. Market appreciation is still the main driver. You’re riding the wave more than you're steering the ship. What this means for you: · You win in SFR when you buy at a discount and catch a rising market. · Your cash flow is yours, but your equity growth is heavily market-dependent. · There are still plenty of value-add plays in single-family, but underwrite wrong and you can be taking a huge loss.