As of now I'm working with my junior realtor (close friend & new to the industry) to source a property where the rent income will be able to cover debt service and operating expenses all while living in one of the units (therefore, removing the rental income of that unit from the equation).

In addition, how would refinancing a few years down the road change the equation/outcome?

its very hard to use the rule out here(for me at least), so really dont rely on the rule focus more so on the numbers making sense without the rule in the equation thats just me

There is a lot of information here on how to evaluate deals. however knowing the formulas on how to evaluate deals is only part of equation.

Your COC is your ROI in these equations.

On turnkey I am offering around 80-85% on the comp and on the fixers I am offering 60-65% of list which equates to about 75% of ARV with repair costs included.My struggle is that I know I can cash flow at List price.

In other words, price is only one part of the equation. 

They are easily the most critical component of the equation. 

Now from what I remember the equation goes as follows, Cash Flow / (1+ Discount Rate) ^ Time.

I do see that there are quite a few variables to the equation that should be taken into account, so again my thanks for making me aware of these.