However, the basic question you're asking is what's the spread between actual and ARV.Since ARV is a pretty soft number, I'd recheck your assumptions.

He may do an adjust for condition (like if it needs a ton of work, but usually not unless it's really obvious - He's not an inspector).As far as reported CapRates, places like CoStar and Yardi have phone banks calling up brokers/owners on transactions to get a number (sometimes any number) to fill in the blank.However, the CapRate is "soft" since you have no clue on how it's generated.  

Which city has seen some softness due to current moratoriums, industry disruptions but the long term prospects are solid as ever.What are your thoughts? 

Walk to each corner seeing if the subfloor waivers or is soft, while looking at the ceiling trying to identify any potential water damage. 2.

The phones stopped, emails stopped, the world was staring at itself in the mirror and was frozen. 2 months went by...I got a contract...it fell through beause the people were new wholesalers...they fumbled around and I let them...I had a soft spot for wholesalers but this woke me up!!!

A couple of other ideas are soft goods like sheets and towels.  

The back building has soft spots in the floor and needs to be totally redone, I walked through with my contractor and he said that was about 3k to fix.

I am not from the area but am considering dipping my toe in the water if there are in fact opportunities yet as part of any broader market softness.

A lot of builders are really pulling back (like a lot of other places I'm sure).Main thing is getting past the soft costs (like $22k to CoP for each unit) and just getting contractors to show and finish on schedule. 

A ton of wholesalers and flippers, but not a lot of developers.  1) I've never tried getting financing to buy the land, I typically buy my land cash so I'm not incurring holing cost while waiting for approval 2) it should not be difficult to get a construction loan, I know lending one offers new construction loan, for my deals I've got a private  lender that borrows me money 3) The way I structure my deals, I'm paying out of pocket for all soft cost engineering, architect,  soil test, impact fees, I left out 2 critical steps on my initial write up Soil test: I'm ordering a soil test as soon I put the lot under contract, the cost is about $500, the county would want to see the result of the test when submitting your stormwater management plan Impact fee: Make sure to check with your county, some counties have them and some don't impact fees could be huge, in my county depend on where you build impact fees could be as much as $25k or $12k 4) I try to get as much as I can get done while under contract, In my county the typical turn around time is about 4months, while in Baltimore county I know builders that will close today and break ground the very next day, they have a faster permit process