Does that mean that when I look at the $90,000 house and the numbers are close and the deal would make sense at $78,000 (that is, the numbers would all fit and give me results within the rules of thumb; 1-2% rule for instance) would one then offer what would work even if it seems quite a bit lower than asking? 

Installing electric baseboard and putting the heat bill on the residents will result in lower rent rates. 

Also it doesn't always hold true in really nice parks and/or California, florida, or east coast as those parks tend to trade at a higher price and lower cap rate per se. 

Also- I am assuming it would be better to gift the house before rehab is done, so it’s a lower market value?

However the downside risk is you could also experience lower returns, or even a loss, since your risk isn't spread across hundreds of notes. 

The value is the lower of the appraised value and the contract price.  

There is a somewhat trend for people to live in smaller lower maintenance homes, this is not necessarily against MFH. 

Turn key operators in warm belt states there is just not enough inventory for a viable business model unless it is at much higher price points than cold belt.Cold belt states tend to give off higher cash flow at lower price points but in general the growth patterns and appreciation levels are more isolated.

I'll go against the grain and consider offering a lower price.

Just hire out the labor at a lower cost.Good Luck!