That's just a mathematical analysis.  

Mathematically, mortgages are way more expensive.

I know others will argue that money is cheap now so I should leverage and mathematically it makes sense.

In general, if there are multiple mortgage loan inquiries within 30 days, FICO formula will aggregate these inquiries as one inquiry, because the mathematical model knows you are rate shopping.How does the model know this? 

Your NOI is way off...You include insurance and maintenance, but what about:- Taxes- Turnover- Vacancy- Rent Loss/Concessions- Capital Expenses- Utilities- Lawn Care/Snow Removal- Property Management- Evictions- Accounting- LegalIn general, you should expect NOI to be closer to 50% of gross income (yup, 50% of your income will go towards expenses, rent loss and capex).So, using that mathematical model, your NOI is closer to $400/month, or about $4800/year.That's a cap rate of about 19%, which is still great...just not as great

While I understand the mathematical formulas that make a property a good deal, how do I evaluate a property's location.

My question is simple mathematics.

No lie, I'm big on formulas and mathematic equations to calculate risk/ reward/ etc.. 

Mathematical finance major too.

There is the theoretical/mathematical way of doing things then there is the real world.Most deals are NOT going to be valued by cap rate, at least at purchase.