When I look online I see nearby duplexes that have sold at a price that would substantiate my value in the $180k-$200k range. 

My 20% Ownership of Annual Receivables:  $4,800 to $6240Additionally, I would receive 20% of the property value (minus land)  (which would vary depending on CAP rate but in the range of ~$100K to $117K. 

I would guess he is expecting something around the $470K range?

I didn't see, but do you typically charge points and have a range for the interest rates?

DFW metro as a whole has 215 available on mls ranging from 179k-1.3m.  

Once you have a portfolio, THEN the cost and effort to maintain an LLC *may* be worth the effort.Be advised, it's $800/yr to keep an LLC in Calif AND the list of members must be filed annually.All the seminars taught the legal entity stuff (usually due to the vested interest in 'helping you') but IMO a good landlord insurance policy + an umbrella policy is sufficient for "well behaved owners".

Looks like the rate can change after yr 7, so the payment is given as a range.  

Based on comps in my area ARV is currently looking to be in the 320K range.  

It merely "targets" the ...rate (or the range of rates, in this case) that it believes is in line with its policy goals.

If you also want to get appreciation potential then you need to make sure you are looking at homes on average in the $100k + range.