In a 6 unit building if I have 5 identical units renting for $900/mo and I fill the one vacancy very quickly for $1000/mo I instantly have more leverage to raise the others closer to that $1000 mark as well. 

I'm proceeding with employment verification - bureaucracy takes a day or two.

I too came across a deal almost identical to this not far back.

When I compared his math to mine, we end up at almost the identical profit margins, so in essence, we use the same formulas.Lets use this as an example:Purchase of $200,000Rehab of $40,000ARV of $320,000That is 75% all-in.I have 5% agent fees and 1.5% title/escrow/transfer taxes/misc for a total Resale cost of $20,800 - Lets round to $21,000 (I ALWAYS purchase a owners title binder on acquisition to cut my title costs on escrow, if not, expect to pay 2% total.Assume 12% interest and 3 points for financing, plus $1k in fees and assume you can borrow 100% of purchase, you bring $40k rehab funds for skin in the game.

I'd invest first, but do worry about income verification for a lender as well.

Thanks Matt R. so it looks like it's another version of a FHA loan but administered by a local identity rather than federal/government.Thanks for sharing!

Pick a name that represents the kind of person you are and the kind of business you want to be, not one necessarily about real estate.Build your brand and identity around your name.  

The appraiser will not compare it to a nearly identical 5, 6 or higher unit count even if it's next door. 

Two identical units in the same building can gross different amount based on decor, marketing and how well the manager (you or another person) answers the guests and makes them feel special.

I would argue that $75,000 is the actual value, even if the identical house across the street sold for $100,000, 366 days earlier.