I think the problem with using CAP for residential properties is a flawed understanding of what CAP is....CAP is a fixed rate, based on similar properties with similar investment risk.

The big ticket items were obvious so no real surprises. 99% of the time when you go over budget it's usually because you change plans mid flip or something is uncovered during demo (rot, plumbing issues, structural and so on) .

The basis of my argument is that the appraisal was flawed from many angles, and the valuation was not fair compared to what is going on in my neighborhood.

if those numbers are accurate/actual (noi = 60450 and price = 465000) then that could shape up to be a good deal.a lot still needs to be uncovered through due diligence and examined such as:-title report-inspections/inspection reports-previous yrs income/expense statements, rent rolls, utility bills, any service contracts attached to the property, previous years tax bills, etc.

I think there are many who believe the military pay system is without flaws...no such thing as a garaunteed pay check. 

If someone is reversing payment, they better have pretty good proof as to why they are doing it.Not that difficult to reverse: https://www.biggerpockets.com/forums/52-rental-property-questions-landlording-issues/topics/538298-cozyco-problem-potential-major-flaw-in-their-system 

But only using completely flawed logic.By your logic, you only made 3.9% appreciation on housing, as that was the average nationwide in 2015.

Welcome.If you're in IT, then you know it would take a 12 year old kid about 2 minutes to "uncover" your ownership.PO Box, Yes.

Section 8.My question is: Now that I've had the inspection and uncovered ~$15k of repairs that will be needed over the next year or two what would you say is a fair purchase price for the size house, area and fact that there is a tenant already living there? 

Your logic is extremely flawed.