(Your basic BRRRR method.)

So do you think I should stop trying to rack my brain on figuring out the market value of properties in that area (since it doesn't appear to be very straight forward), but instead focus on getting out there and finding a deal by sending my mailers, following up and once I get someone interested, then figure out the market value of that specific house by the method you just explained?

I've gotten good deals from each method.

There are some shortcomings to this method of collection as far as prevention of partial payments.

Purchase price, rehab estimate (if not known, describe what it needs), market rent comps, ARV/BPO after fixed, method of financing and cost, that type of thing.And tone it down before they send the rubber truck!

Here's a website that explains it and provides a spreadsheet to look at.Someone on here that uses this method for their apartment recently mentioned that they only bill out at an 80% rate and still eat some of the cost, here's why.

Look up the various methods here on BP for all sorts of advice and real world examples on those options.

The OA is silent on the method of ownership. 

On smaller deals like this, the valuation is determined by the market demand as appraisers use the sales comp method. 

Running numbers you actually see he makes much more sense with this method.