What can I do to improve my changes of selling near ARV? 

Should I be analyzing deals for owner-occupant homes the same way as a complete rental (~12% cash on cash, 1% rule, etc.)?

Just keep fine tuning your process and shoot for the 70% rule as best you can.

They are older and will need repairs in the future.My plan would be as follows:Purchase for $200,000 with 5% down so I would be into it for $10,000.I am asking that the owner hold financing for 5-7 years at 6.5% while I save the monies, improve the properties.  

Yeah, stick to 3x the rent rule.

After that, mom did not give tenants permission to paint.But then there were these college students who didn't care about rules like that, and they "painted" - I have to put that word into quotes, because when you see what they did, calling that painting would offend the members of that trade.

According to my attorney, I am already exempt from a lot of city rules since I live in the property.

This means that the downpayment of the borrower/developer needs to go towards improvements first.

@Ayne Cardona you may have violated some sort of rules for bigger pockets.

My initial projections based on a buy and hold analysis are:$1550 a month in income(Lots of assumptions here)$904.78 monthly expenses(Including maintenance, management, and the vacancy rate)$645.22 monthly cash flow23.45% pro forma Rate$9240 net operating incomex 50% for expenses equals $775Monthly interest/payment equals $124.78Total monthly cash flow using 50% rule equal $65082.90% cash on cash return on investment30.90% purchase cap rateTotal operating expense $780 dollars a monthAs I stated earlier, the house is close to downtown and the State University.