I believe ARV will be higher than this but starting at 800k is a safe and conservative number. 

Make sure to analyze cash flow, including conservative estimates for vacancy and maintenance.Indianapolis Market: Indy has solid multifamily options in neighborhoods like Irvington, Fountain Square, and near downtown.

From my understanding, as long as you intend on doing a STR when you close, there are no rules against changing your strategy after closing, especially if you find that something else is more profitable.So in our case, the lender determined an STR would bring in ~$3500/month (with all of their conservative factors), but now that we operate it as a huge 3300 sqft Co-Living property, it actually brings in $7000/month.

My underwriting is a bit more conservative than yours (and yours is more conservative than most I see).  

Lastly, make sure to rework your numbers on the conservative side. 

Look for properties where you can add value with smart, targeted renovations rather than going overboard.Financing Strategy: Since you're aware of the leverage risks, keep your financing options flexible and conservative.

Am I underwriting conservatively, accounting for higher interest rates, inflation, and potential market softening?

I think it works very well, but it is a very conservative strategy too.

Lenders that don’t require an appraisal will perform a desktop appraisal but will typically have a very conservative view on the value of the property to protect the company’s investment.

Conservative, aggressive.