If you can establish that it was an Arms Length Transaction between two independent parties they should use the purchase price.  

Seems to me that YOU don't need to buy for cash flow, but rather, for forced equity / appreciation.ie.

Seems the Lawyer we currently is more interested in putting us on retainer and forcing us to travel to his office every time we need to talk with him.  

But it forced me to go big or go home right away.

It makes duct work for forced air heat very reasonable.

I'm not looking for my future dream home, just a place to get into that needs updated for that forced appreciation and in a year move and repeat the process. 

Which means an ARM, short term and more out of pocket costs.

I have always lived more on the motto of try as hard as you can, and when it goes wrong, figure it out and fix it :) similar to what Kiyosaki says in rich dad poor dad, that he saves or invests more than he thinks he can, so he is forced to make it work :)

If you can't make that work, you don't try to force the deal, you walk away and look for another ... you will walk away much much more often than you will buy, and that is ok and as it should be. 

I think the market is on a much more stable foundation and if a correction happens it will be a correction, not a total collapse.That said, the best thing you can do is to get to know the economic forces driving your area.