I've done a number of deals as a buyer and that's usually how we arrived at it.Of course, you also need to see if the owner can do the financing. 

The cops were called, the strangers were already gone upon me and the cops arrivals.

@Jermyn Brown  Ask how they arrived at that number and what comps they used. 

...to estimate a prop value at an appropriate cap rate (8.5%), in this case we would say the bank uses 8.5% cap rate and divide into the NOI to arrive at an approximate valuation for the property.  

and this was walk thru when she arrived..

There is not enough information.Is there $200,000 equity in a $200,000 property, how do you arrive at your operating costs, is $2500 a arbitrary number or is that a fair market rent.

\I am trying to put some kind of owner financing package together with this one but am having a hard time arriving at a fair purchase price.

My thought process for arriving at this conclusion is that although the lot size is the same, the value of the improved lot is not the same as a vacant lot because there would be no improvements yet on the vacant lot.  

Just wondering what different criteria you are using to arrive at your particular (lower) MAO(?).

In fact, I just had family come up from Charleston to Wilmington last week (via hwy 31 through MB) and it was already highly congested w/ early arrivals.