The dialog with the seller is one of the key components that I use to request additional info for my due diligence.

Its one component as already has been alluded to here.  200 a month seems like a pretty small amount without knowing the term/ rate/ balances etc.    

At that point you've raised some rents, made sure you're stabilized, and are the perfect refi customer to a commercial bank or maybe a B2R component. 

Not sure if you can do a 1031 on that component of the sale.

We are in midst of as much of an amateur as at any time in history - everyone is in RE...And finally, there may indeed be some value ad component to this which you've missed...

Appreciation alone is just one component when evaluating a property to purchase.During the housing bubble, "appreciation" was thrown at anyone that had a heart beat and acted like they were experts in the housing market. 

Can you break down this component of the equation?

I don't think it will compare well to wholesaling houses.One of the main necessary components for wholesaling properties is acquiring the property significantly below market value.

In Wisconsin there are several components needed to create a valid contract, all must be met to be enforceable.  

I include most major components in my initial Rehab that is not projected to last more than 5 years.