IMO, that's not a very sophisticated way of budgeting, b/c it fails to consider ROI and marketing efficiency by channels.How many listing/buyer clients can you &/or your team (if you have one) support?    

Most sellers aren't sophisticated enough to understand overly complex formulas or EBITDA analysis.  

The ARV's are usually based on retail sales not sales of rental properties.. that's why anyone buying a rental in any mid west rental market no matter what they pay for it basically will not realize phantom paper equity unless your a highly sophisticated marketing machine that can sell out of state

Elderly investors should have some test for sophistication and/or limits on investing (10% of wealth?).

I have an Accounting background and worked for 14 years in hotel accounting before moving to Douglasville last year and starting a tax, payroll, and bookkeeping company with an old friend.  

So many 'sophisticated' methods of investing get folks' rears in cracks I probably got carried away.  

I am of the same capacity, have engineer and architect on payroll, 3 superintendents, and a good pool of employees; that said, overhead is not easy, and smaller jobs <15k aren't that enticing to a GC with robust capability.

I eliminate all corporate owners as they will be more sophisticated than I want to deal with.

In that order...Therefore, pricing out the exit is imperative for me on any hold time-frame as a matter of funding a deal. no exit = no IRR underwriting, which my guys want and are too sophisticated to invest without.Now - obviously you can't base the exit on today's NOI nor Cap Rate.

They may go about 10% below the value, but at this point the mortgage companies are pretty sophisticated in their short sale practices.