@Einat MenasheThe matrix below may help with terminology and comparison/contrast across the various property types, the information is general in nature and there are of course exceptions:So based on the matrix above, your question:Is it correct that the ARV for small multi-families is based on your NOI and Cap Rate?

Natures Miracle

Environmental Protection Agency (EPA) or state-certified lead-safe renovation contractor must beused for the painting work; machine sanding and use of propane or gasoline torches (open-flame methods) are not permitted, and just washing and repainting withoutthorough removal or covering with siding does not constitute adequate treatment. 

@Jordan MoorheadAs a Minnesota (temporarily a Wisconsinite) I've subscribed to the cabin religion my whole life and my near-retirement parents are trying to understand how to afford their own to retire with (religion makes us do crazy things ;)As near as I've been able to good naturedly guess, the cabin love is what you get when you mix the seemingly universal desire to travel with the home-body reserved demeanor of Midwesterners.

You could say that you are with the insurance company and want to look at the property to ensure it is adequately covered or an inspector of some sort or a contractor as the owner wants an opinion on the condition of his property. 

I think the nature of my question is more from the lending side.

High risk is going to have high cap rates. yeathe question posed is such risk adequately reflected in the cap.    

Many will say their eventual commission is their incentive and this is simply the nature of their work, but something like a gas card would help let them know you appreciate their hard work and should be pretty universally accepted as opposed to trying to guess what restaurants they might like/stores they might shop at.

BUT, i have been the victim of two arson attacks at two different residences(stemmed from my confrontational nature, even though I was morally in the right), I have several friends/acquaintances that have been murdered by opposing gangs of their friends or relatives, even though they themselves were not gangsters.

Keep collecting rent until a natural turnover occurs.