Unless you need the additional money or the gains outweigh the costs, you may want to do a more conservative 75%.  

But at this price point they are going to be more conservative on ARV because of the smaller buyer pool.Based on just the information you've provided, I'd expect a flipper to pay $875k for the Property. 

If your $2,060/mo is a true cashflow then the deal yields 2,060*12/85,000 = 29%To be conservative, shave $600 off of that for vacancy, repairs, misc and you get $1,460. 

Holding properties with no mortgage you get killed on taxes and a relatively low total return vs even conservative 50-70% leverage. 

Really just using general conservative numbers I've seen recommended in webinars and books

Find average appreciation in your market, conservative cash flow numbers. 

They have full real estate cycle experience, conservative leverage at around 40%, diversified thousands of properties across geography, and tax that they feel are recession resistant.

A full rehab cost would be around 25-30,000 (conservative numbers) and the ARV would be somewhere around 65- 75,000 (conservative numbers).

A 4% will be more conservative. 

To be conservative lets ay your property is valued at 200k X 90% LTV = 180k -40k you owe = 140k That's a nice Heloc line to help you invest in your next property.