Or would another option serve the purpose better? 

I'm thinking about using this to substantiate for tax purposes.

Rentors are easy to deal compared to former owners.

I'm planning on going to the auction for the sole purpose of learning. 

The 1st Quarter numbers are in - these numbers compare January - March 2018 to the same period in 2017.

This is why cap rate is commonly used to compare one property against another to determine which is a better investment.When you measure ROI specific to you (i.e. the investor), then yes it makes more sense to use your down payment.

Hope you are dead on and you saved a ton of $$....But let us know in 6-18 months......I've seen too many " the pro wanted $xxx dollars and I got a handyman/guy off Craigslist to do it for 1/4 of that price", only to have that job/repair/equipment fall apart in a few months and cost double to fix it compared to having it done right the first timeIf it all work out, fantastic....but sometimes you really do get what you pay for.....

I wrote the above for informational purposes.

Cash-on-cash is relative and it is only one metric...and it really only works for year one to put properties on a level playing field so we can compare where to put our limited dollars.

If the 165 ARV is based on the bad layout, you could compare the cost of a floor plan change to how much it would increase the ARV.