If a bank sees you consistently doing profitable deals, that lowers their risk.Personal Property: if you're making the money, you'll get the loan for your personal property in 5-10 years.2 Years Performing Asset: what to keep in mind with all of these "rules" is that they usually reflect rules for a "conforming" loan, i.e. one that will qualify to be sold to Fannie/Freddie as noted above.

Free cash-on-cash seems to make the most sense to use as it closer reflects reality.https://www.investopedia.com/ask/answers/111314/whats-difference-between-free-cash-flow-and-operating-cash-flow.asp

This is what this deal reflects. 

Why were not these values at least reflected in the appraisal? 

This does a few things: how much of a loan I can seek how much cash I really need up frontIt would more accurately reflect any appreciation (though I'm planning on being a buy and hold investor, and equity is less critical than positive cashflow, IMHO)Example:Turnkey(TK): Asking price: $35000,  with tenant $650/mo.TK: $300 setup costZestimate:  $18500Closing Cost: $1000In BP's Rental Property Calc I then would put that the rehab cost would be $16800  (16500 premium + $300 setup)the value after $18500So,  what have I missed? 

Typically if the landlord pays heat, the rents reflect that.

Another edit: the numbers do not reflect that you invested the rents paid out to each partner.

And your business will be a reflection of yourself.

BCAD is not always an accurate reflection of what a true value is for the property.

Often times, the inside of their car is a reflection of how they would keep the inside of your unit.