Hello all, I appreciate any help. An REO was listed on the market that was tenant occupied. It had multiple offers above the 317k list price. An investor was able to purchase it for 317k since it was an all cash purchase. The sellers did not take the higher, financed offers because the sellers felt it would not be able to get financing due to tenants occupying the property and some potential health/safety FHA issues. Since the purchase about 45 days ago, the investor has moved out the tenants, repaired peeling paint (it was built before 1972), fixed damaged roof tiles and built a safety fence around the swimming pool as required by local ordinance. Now, the investor is in contract with a FHA buyer at 360k, which is a 43k increase. I am doing the appraisal and I am attempting to explain the increase in value. I understand the investor has some out of pocket costs (repairs and paying tenants to move), but I think the real increase in value is: making a previously un-financeable home, now FHA financeable Is there a term or concept out there that helps explain how making a house financeable creates instant equity because you now have a larger pool of potential buyers, higher demand, etc?? Any help is appreciated, thank you in advance.