The client mentioned above, using the income approach we worked backwards.

There will be steps forward as well as steps backward.

I have absolutely no knowledge of Phil or his systems, so this isn't directed at him.But, unfortunately, your analogy above is backwards. 

Then we move backwards into the vacancy rate, and other figures.  

I have started with the most recent ones first and will be working backwards. 

On my JV lending company I am telling all my mid west east coast clients quit letting these wholesalers dictate such large slices out of the deals .. the day of them taking bigger fee than anyone makes has got to be over .. work backwards from rent  figure in the new rates and come up with a new value for rehabber houses and dont over pay..

I forgave 3 months of rent so they could pay the electric bill instead.. again Jay's version of landlording kind of goes backwards..

So, if they were doing the title backwards by name and the foreclosed owner had given a QCD to someone, they could follow the title back from him, but there would be an open mortgage, because the foreclosure doesn't show.

It does sound to me very much like a HML situation, but approached backwards. 

It just seems backwards to me that you are concerned with how to structure your business but you don't know what a P&L is.Regardless, I'd like to offer my two cents.