As to your client’s deal, if his forecast is predicting a 50% return over two years it’s very likely that either something was missed or the assumptions are overly aggressive.

My point, if the goal is big enough sharing a house with tenants isn't really that big of a deal as long as you have a few basic assumptions and are willing to be patient.Also fantastic advice from@Robert Ellis on finding a lender and getting pre-approved as quickly as possible. 

. :)Usually, the bigger the deal, the more sophisticated the operator is, and thus better records.So if you're doing more smaller deals, you may have to settle for less, but you can try and get creative during due diligence to verify your underwriting assumptions, like knocking on those same doors and getting a signed estoppel. :)James

Many here may be familiar with appraised value but the bank may have asked an appraiser to develop a market price with a few assumptions.

I think your assumption of 4.5-4.90 is a fair assumption. 

Let's make a favorable assumption, split the difference, and round up to a nice number: $3,200/month. 

I made some assumptions above but without all of the information I would be speculating as to what makes the most sense for your circumstances.

@Norman WaltonYou asked a good question but there is a base underlying assumption that may not be true.

A foundational model based on a strong market (jobs/population exceeding averages and projected to continue), conservative deal assumptions / modeling (rents, occupancy) and an experienced team should weather downturns. 

Spend the best few hundred bucks you have spent in years.....sit down with a local RE attorney familiar with foreclosures, with your list of questions/assumptions.