Ideally, I am looking to buy a homes that needs work, rehab and either flipping or renting if it makes sense.

I'll be managing it myself and I know they have to do calculations that would be in a sense worst-case to accommodate another owner (like the bank) who may have to hire a mgmt company but to get the best valuation possible I was hoping there may be some wiggle room there too. 

It makes excellent sense. 

Seemed to make a lot of sense, talked with the V.P of the bank, very nice and informative.

You can find a lot of good information at sense financial.

Invest where it makes sense for your goals.

Id suggest taking your purchase price, plus your rehab costs, then diving that number to assign part of the value to the land and part to the building in a percentage that makes sense.

If lender's experience is a rather integral part of the transaction and it's on-going operation it would make sense to have a premium over just a passive capital rate. 

If you have several rental properties (it sounds like you do) it would probably make sense to do cost segregation to take full advantage of accelerated depreciation and bonus depreciation.

I'm basically trying to make sense of the big picture.