a friend of mine is looking to purchase a property for 385k on an owner carry and the home.owner wants 200k down payment.  60% seems a little ridiculous for this property.  

The higher the risk, the higher the reward.Manhattan and surrounding high-income areas have ridiculously low cash-flow compared to their purchase prices because investors have lower vacancy rates and gain appreciation faster. 

That may allow you to turn your monthly housing cost into $0 (or some other ridiculously low number), which will let you build up cash quickly for investing.

That comp range is ridiculous.

Buyers who are working with realtors will generally pay more than the average investor as well, as they are used to looking at deals on the MLS and my prices seem ridiculously low to them, whereas the experienced rehabbers and landlords are still trying to talk down my asking price. :)

That is a ridiculous notion based on the assumption that IF  a landlord accepts a partial payment then they have agreed to cancel the eviction in exchange.

Bank: They either (1) tell me and I laugh because it's ridiculous and we talk about the process to appeal the appraisal, or (2) they tell me and it's realistic and I have to decide what to do, or (3) they don't tell me.

Sellers are sometimes just happy to stop the bleeding and will accept a ridiculous offer. 

It is ridiculous. 

It's really ridiculous that it's been going on since October.