My objective is to move the building in the other direction with improvements and rent increases to get higher quality tenants.    

I know the formula is a guide/base line but when you have ARVs hovering around the million dollar range, is there a rule of thumb or a percentage amount increase to determine purchase price?

In any case, I put an offer in on a condo following the rule of buying 20% below FMV, and it was countered but still not even close to where I needed it to be for it to work.I researched about 25 properties viewed 4 and put an offer on 1 and it didn't work out.

Does anyone know of banks that will have different policies or does this rule somehow not apply when it comes to bank account contracts?

3 BR/1 bath asking $170k.Taxes are $9,062 (although I saw at least one other figure on a different website, I went with the highest)Here are my assumptions:closing costs - $4,000rehab/initial improvements - $5,000 (this is a blind guess because there are no pictures of the inside available, but let's not focus on this number right now...)Rent - $2,000vacancy - 8% ($160/month)property management - 8% (the calculator I used (downloaded from BP) uses net rental income for this, so it's about $147.16/month)maintenance - $1,000/yearcapex - $160/monthinsurance - $1,000/yearwith a 25% down payment and 4.5% thirty year financing for the balance, I net a whopping -.82%.  

You need you buy and renovate, maybe turn a SFR in to a duplex, something, which will improve the living density.

You're far better off working with tenant/buyers directly.As for costs, that all depends on the rules of your local MLS and your broker.

The 1% rule is basically impossible to achieve in Portland2.  

Account ClosedMark is referring to the prohibited transaction rules which would absolutely prevent you from putting an asset you currently own into your IRA or 401k.You can invest a self-directed IRA or 401k into real estate, but as a disqualified person, you would not be able to transact with your retirement account.

@Alex CottmanSee following regarding the 401k loan rules. https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans