It's fallacious to think that there's one number for a community or neighborhoodAnd for more fun, we used an arbitrary GRM of 11 to derive the FMV which we closed on.Preach whatever you please, but the practical side of the transaction demonstrates reality.The whole intend of the CapRate metric is to compare one investment to another, not to price fix.

The property still had to appraise.Now, down payment assistance cannot have funds derived from the sale, so this kick back method is not legal from a federal perspective.As to the question of having other assets encumbered, yes, that is done. 

The analysis needs these items, learn the terms and you can save the $59 bucks:purchase price (PP)down  payment (DP)   derived financed amount (FA)all numbers are annualized, rents for the whole year are GSIGSINOI  (just gsi less expenses)DSCR (debt service coverage ratio) = NOI / mortgage*12cash-on-cash:  NOI / down payment [how well your cash is performing]cap-rate:  NOI / PP [ how well this property generates cash]for an all cash sale, the DP = PP, cash-on-cash will become the cap-rate.

You will hear different people use zillow or other websites as the sole basis for deriving ARV.

As far as the Cash ROI, that is based off of about a 3% down payment which I derived from your stated mortgage payment at 5% for 30 years. 

You always need to derive your own Anaylsis of a property and never solely rely on the seller.

BY the way, how was the repair estimate derived?

That is not really what you should be focusing on, focus on the risk and return derived from the characteristics.    

@Derek BennetsenYou would need to check with the crowdfunding provider and/or your tax advisor.A fund that derives its income from 100% investor owned rental property would be passive and debt-free, therefore no tax implications for an IRA or 401(k).A fund that derives its income from leveraged rental property would pass UDFI tax liability to an IRA.  

I derived my cap expense by filling out a spreadsheet with expected costs and expected life spans.