Is it considered standard to include all closing costs, capital outlays (for repairs, improvements, etc), and loan origination fees in addition to the sales price when calculating cap rates?

I also know that no potential buyer will accept $140/130/120,000 if they know I purchased the property for $95,000 and made no additional improvements/ repairs etc.

But we have shown the great improvements and submitted everything for appeal showing all the updates and changes. 

Our intent is instead of having the buyer put down a huge or customary down payment we start low so they have funds to improve the property since many need repair.The rent ($500/month) is roughly 65% of local market rents.

The last piece of advice I have is to always be improving yourself.

The appraisal report demonstrates that the improvements are typical for the market through an analysis of at least one comparable property with the same use.

It was my first purchase needing what I thought would be a $60,000 improvements but ended up being $130,000.

It was my first purchase needing what I thought would be a $60,000 improvements but ended up being $130,000.

I realized that some of the improvements were made to make one of the units comfortable for us to live in long term and that we wouldn’t get all of our capital back from refinancing.

But there is a lot of room for improvement in order to raise the rents to market rate (i.e. kitchen and bathroom rehabs, things here and there mentioned in the inspection report).