Some years can cost more more than other, thus, the expenses that are passed onto the Tenant fluctuate accordingly.

If you did this and either held it for a year (I️ believe that is the standard, but I️ would confirm with the banking institutions you want to go with), you could then refinance, pay off your land contract and pull cash out if appraisal came back higher.Your original thought process is correct in that a bank wants the 20% (I’ve seen closer to 25-30% on commercial loans until you build relationship) to protect themselves from fluctuations in value, but they also want skin in the game.Good luck,Roger

Like a 10-20% fluctuation just in case of surprises?

Some places are sensitive to fluctuations due to local circumstances. 

I know I don't make a ton on it in Ally but it keeps it liquid and my money doesn't fluctuate.

If you are talking about a nationwide real estate market, my assertions is: that a nationwide real estate market does not exist and the 'cycles' you see in the Case Schiller are the second and third order consequences of fluctuations in the greater national economy, which has demonstrated cycles. 

So if you raise rents by $100/month on an 8-cap commercial building, you have now directly forced appreciation by (100*12)/.08 = $15,000, whereas on a residential, it depends a lot on what your neighbors last sold their properties for.Of course, nothing ever works out that precisely in the real world, as caps also fluctuate, but caps are not as volatile as comps.

When it gets that low, it usually only stays for about a week, and then it’ll fluctuate between low 30’s-40’s.

Add the plausible cost of steel prices fluctuating, and people are not jumping at every opportunity (I, of course, don't know where your location is and the total possible value, this is a generality)   4.

That way, you can understand if yours is a seller's market and predict fluctuations in order to adjust your timing when listing your property (spoiler alert: we can't really predict the future, but we can certainly identify trends and be more prepared than others);2) Consider potential uses: Depending on the demand in your area, converting a 4-family into a 2-family or single family home before selling might translate into higher and more profitable offers.