So, owners who have done the numbers wrong will stick to their expectations even in the face of growing losses due to holding a vacant property.Perhaps a way to deal with them might be based on information available from the public records showing their purchase price at acquisition from which you can work the rent numbers backward and possibly show where the numbers are out of line for the property's rental market.For what little it may be worth ...

A good TK company has processes fully dialed in - acquisition, rehab, correcting inspection items, tenanting, managing, etc. 

If you've used Real Acquisitions to generate lead flow, do you recommend it?

But, if their deal includes an acquisition fee, this might be meaningless. 

There are a handful of things you can do from the time of acquisition to the sale that will help in this area.

We purchased a vacant lot in a great location off-market, split it up into 3 parcels, listed on MLS and are under contract to sell for around $200k more than our acquisition price.

Also with $400k you will need to take into consideration when investing loan costs, rehab costs, and operating costs so your $1.6M would be a little less based on needing money for those things on top of the initial acquisition/down payment cost. 

@ANDREW GALEANOYou would borrow a percentage of the acquisition and many times, 100% of the rehab paid back to you in a draw schedule. 

Also, do you factor appreciation into the formula (or just stick with acquisition price)?

Steps to why a great rental is sold: (one of many scenarios)1 - REI buys property for cash flow2 - Property is owned for enough years to pick up appreciated equity3 - Property is worth more to the owner investor now as a flip than a rental based on net profit at sale.4 - REI sells property to another investor (obviously not you) that appreciates the quality of the property and the cash flow that new investor can get.5 - Seller takes cash back and profit from sale and buys either bigger property or multiple properties.6 - New acquisition(s) cash flow more than the original property.