Are you using pro forma projections or audited historical performance?

In my opinion there's serious temptation to lie if someone has a property they can flip and make 15k profit on if all they have to do is fudge the class of neighborhood.And you're right about the unrealistic pro forma numbers...they're ridiculous. 

Yes, the first step is to find a potential Facility (lead) and then to evaluate it to make sure that it is a "deal" - this means finding out what it is currently worth (value), how are you gonna pay for it (financing), and what is the value-add so you can increase equity & cash flow (pro forma).

I've been looking through CRE listings in my area on LoopNet and practicing making pro-formas on them.

I agree that this "accounting technique" is very distorting (and artificially boosts the return versus a sponsor that's isn't doing this).And most sponsors don't do this...but enough do that I always dig into the pro forma to look (and then take it into account when doing comparisons).

Now to answer your specific question, the value of the approved (shovel ready unit/lot) is the price that can be supported by the product and project you got entitled AND meets with the developer's (your buyer's) pro forma financial performance.

He great form as well and great as a personal managing tool.

Tax returns, balance sheet, pro forma on each property.  

By teaming up with other investors to form a syndications, we were all able to fast track to investments that were truly passive.If you are concerned about being overwhelmed with the scalability of single family rentals or would like to achieve similar returns in a more passive way, I highly recommend the Multifamily route.

@Daniel Thomas, I would advise you to be very cautious with your pro forma rental rates and your vacancy percentage projections.