Most of the mathematics I have seen this far don't seem to indicate much excess cash flow in buy and hold properties.* Often new investors are advised to stay local when making their first forays into the market, however what do you do if the areas which interest you the most, the ones that seem to be experiencing the best growth and appreciation, are distant?

My advise would be to focus on analysing a business thoroughly and not quickly before making an investment decision.Naturally there specifics to different industries which one needs to know to evaluate the quality of a revenue stream; the reasonableness of operating expenses; and whether the debt load being carried is appropriate, but the mathematical callisthenics are the same.Screening a property, or business, to see whether it warrants further examination is a different matter.  

In the world of mathematics, you can NOT use a number unless it is accurate. 

You can if you like the house, mathematically it might not be the best option but not all decisions have to be math based. 

@Delmas Edwards AVM (Automated Valuation Model) is an mathematical model that analyzes properties based on comps.

Hey @Cody Evans,I am a new investor also from California, also a mathematics teacher, and am investing out of state.

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.

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.