A lot of time you won't, therefore you also have to evaluate your marketing/sales strategy to partner yourself up with the right property owners that everyone wins in the end. 

Then, compare those returns with the stock market’s historical 8-10% long-term gains to evaluate whether the investment makes sense.Also, consider whether you can comfortably cover the $1,000 monthly shortfall.

Does the lender evaluate based on ARV?

I’ve been evaluating deals on single family homes in Lawton, OK and the cash flow seems pretty nice. 

We identified this N Lofgren Rd property through our partner network, and upon evaluation, we recognized its potential.

We're in the process of evaluating a multifamily near where one of my sons attend college. 

Third, Even though that cant call your second building two townhomes, they can call out that you have two duplexes, which could still effect your evaluation.

I would do a cap rate evaluation and try to achieve close to a 8-cap after all expenses. 

Take your time and evaluate and do a lot of due diligence. 

This thinking contributed greatly to the market crashing back then and no lender in their right mind would evaluate a deal in this fashion.Lenders will always base value on the lower of the appraised value or the sales price.