Keeping in mind it is not fully rehabbed either but built 1980 so not too ancient with new windows, newer roof.

By the time you have signed all the title docs you will probably have indemnified the insurance folks of all liability except for the most obscure and rare clauses i.e. someone has some ancient mineral rights to the land.

Naturally, the validity of the end result is only as reliable as the data inputs used to determine your revenue and operating expenses and relies on the assumption that the market CAP rate was determined using the same methodology and inputs.

As the book recommends, you'll want to find out specific prices for your area, the types of contractors you'll be dealing with and the types of houses you'll be working with -- the book is just a methodology to do that with general ranges of prices. 

I know they are starting to loosen up a lot of the restrictions as this building methodology.

It's amazing how much of our legal system still uses that ancient language.

I put in swag guesses using public data on a property I plan to inquire about - 2500 sqft 4 bedroom (relatively ancient) townhome - and got a quote of about 1500 for a year of standard 1 mil/2 mil coverage.

Walk them brought your valuation methodology.

Anyone know how this became a standard - the methodology behind 2%?

Then, as the deals flow in, dissect each one using your preferred analysis methodology.