When I do my analysis I also factor in the cost of a few trips home for problems.

This triggers a number of factors to consider: you, your spouse, and any of your ascending or descending family members (and descending family member's spouses) cannot make any personal use of the property and are also prohibited from doing any repairs and maintenance on the property.

I was simply asking what factors do actually determine ARV and everyone seems to be saying that it is the market and comparable homes that determines value more so than anything else.

That is a big limiting factor for a lot of people.However there are ways you can get into this business with much less money down.

In this case the sellr will be losing about 6% less then you agreed to get them paid.You should have the deal under contract, in escrow with your choosen title company and the title company will have this as a pending property automatically preventing the buyer from purchasing with out you.Also a factor is if the buyer is represented by a Realtor are the buying cash or conventional.

That is a key factor in being successful in REI.

I've factored in 10% vacancy, 5% for repairs & maintenance and 5% for reserves in addition to taxes, insurance and management.

Another factor in favour of a corporation - as opposed to a partnership amongst yourselves - is that there are four of you.

I never factor in appreciation to deals I make.

(Granted, we'll make it clear to them that we're investors and buy at a discount - but they don't need that shoved in their face, so to speak.)But there is the time and cost factor as well.