But if the appraisal comes in lower (or higher) then you can adjust your payoff. 

Naturally we push the limit to the point that the Housing Specialist might request a small adjustment to meet the calculations. 

I'm fully aware of the intense competition, but after visiting several areas, I still believe the Midwest is worth the risk.

Then, there is an adjustment for the tenant's income and finally an adjustment for the area Fair Market Rent.

All I did was look at a property, run the comps, and got a reno budget, So nothing to intense.

I know they adjusted voucher limits higher again this year and we'll be pushing for increases on ours when they come up for renewal. 

You'll need to make adjustments as the utilities cost changes.

That doesn't necessarily translate in high real estate investment returns but you can make some money investing in real estate there (like it seems you do) and so it makes perfect sense that you do that since you live there.Those like me who don't live in Panama are likely purely looking at figures and comparing risk-adjusted returns with other countries where they can invest.

Lets shoot for $90k down, $150k gross per year, adjust for your COC calcs, once you throw in expenses, Debt/Interest.  

Use the public records for your offer, and negotiate hard, I would add in the special provisions that offer price is based on $x/sq.ft if the house is smaller than the listed sq.ft the price will be adjusted based on the sq.ft.