I would normally put their T12 income over our  yr 1 expenses, but that would likely be a negative cap rate.  

You'll find that many often require substantial fees in addition to your monthly payment in order to finance projects outside of their normal scope.

They evaluate loans normally yearly, some have renewal fees if they have to spend time on it.

Normally as soon as you can provide proof via your tax filings. 

So how is the normal things included in the Hoa payment like water, sewer, garbage, utilities, etc getting paid or taken care of ?

Is it true that you receive substantially more rent than the normal market?

I have read several times that fear and mistake making was pretty normal.  

The challenge we are facing is that the normal starting point of an accurate ARV to calculate MAO is really in question. 

I could either look out of area or wait until numbers start to normalize however long that might be.

The problem normally that comes to mind with this strategy is two fold: 1) You have to take title to the property (even if only for a second) so there are double transfer taxes, double closing costs, etc., to pay...., and 2) the new buyer may have trouble getting a loan because now you have a title seasoning problem (most banks only wish to give loans secured by properties that have been held by the seller for 12 months or longer).