This is why cap rate is commonly used to compare one property against another to determine which is a better investment.When you measure ROI specific to you (i.e. the investor), then yes it makes more sense to use your down payment.

Hope you are dead on and you saved a ton of $$....But let us know in 6-18 months......I've seen too many " the pro wanted $xxx dollars and I got a handyman/guy off Craigslist to do it for 1/4 of that price", only to have that job/repair/equipment fall apart in a few months and cost double to fix it compared to having it done right the first timeIf it all work out, fantastic....but sometimes you really do get what you pay for.....

Cash-on-cash is relative and it is only one metric...and it really only works for year one to put properties on a level playing field so we can compare where to put our limited dollars.

The reasoning for doing this is I hear that FHA loans and other traditional mortgage loans takes much longer and are given less priority to sellers and I don't want to lose out on any good deals based on waiting for a loan approval.

If the 165 ARV is based on the bad layout, you could compare the cost of a floor plan change to how much it would increase the ARV. 

Instead of just traditional homes and condos, I want to venture into the unique world of Airstreams, Tiny Homes, Shipping Containers, Treehouses. 

Residential uses Comps (Comparable Sells) to determine the value.  

I personally have multiple plans-401k, multiple Roth and traditional IRAs, HSA, and several CESAs.

Roper's life: he appeared to live comfortably by renting out a series of apartments and even managed to sell that statement complex and buy a house and live without a traditional job.

Rent is based on market rent of comparable size and quality rentals.