This could easily be interpreted as a sham to get around net listing laws.

You are winging it.Here... see if you can interpret this data.The only reliable way to get deals doing DMM is when you spend a fortune a month on it.

Surprising, considering the fact that the IRS publications are merely interpretations that carry zero legal authority and cannot be referenced if you're to fight the IRS.

So you are interpreting the entire purpose of marketing completely wrong.You need to do your cost/deal calculations.What you are doing is wrong.

It takes a lot of discretion, to "interpret" a market, neighborhood, criteria, condition, etc.. to determine ARVTo answer your question: definitely a skill you can learn yourself, but until you do, a local Realtor would be the best bet for ARVs.

Am I interpreting it correct?

Based on my interpretation of how California treats a carpet of that age, I think he's going to have a challenge demonstrating it had any useful life left because he can't document the date he installed it, or even the type of carpet it was.

No problem I will.Question:  When sending a preliminary proposal over email, summarized in layspeak, would adding the standard 'This email in no way shall be interpreted as a contract to.....etc" be sufficient protection from even the most advanced legal 'gotyas' that might get thrown at me?   

@Ned Carey my interpretation is that he is purchasing the property from a family member (not necessarily parents) outright and rent out part of the property for cash flow.

Am I interpreting it correct?