In a SFH the tenant is responsible for power, water and (if needed) gas. 

The equity buffer is the lenders guarantee that if all else fails, the property could be quickly sold at a fire sale price and you would still get back your original loan amount plus any associated selling expenses .  

I recently found a home for sale by owner, it's ARV is around $200,000-$225,000.

I get all the above responses...re appraisals and what goes into them...I guess I was asking from the perspective of how accurate is the sales data as it relates to actual sales that they show?  

We can use end buyers funds to fund the transaction, as long as it's not a short sale and the end buyer is using cash or hard money.

I found a great property that is for sale on a auction.

Some banks like them, some won't touch them.Another thing to watch out for is that if you appraise within the 6 month window the appraiser may use the sale of the beat up house as a comp!

Perhaps in this case the percentage that the Realtor collects for the sale of the home might need to be increased?

^Loaded question.....Most popular methods are direct mail, driving for dollars, auctions, tax and foreclosures sales and networking through local rei groups.  

I have been into the construction business since I was 17 including those college years.Remember that marketing and sales ability are very important.