No matter what someone has to live somewhere and in fact, by my living here I'm saving myself an additional $500 a month, so like I say, I don't count this projects current carrying costs in the equation. 

Obviously, if you're doing this full time I think that changes the equation, especially if your problem is being cash strapped. 

Numbers are only part of the equation. 

Cap rate lets you compare properties apples-to-apples bc it takes the financing assumptions out of the equation.

i think your question should be.....best way to "Control" a property......there will be a lot of bankruptcies etc....people looking to get out of their house immediately......which equates to perfect time for subject to....lease option etc......all kinds of creative ways to purchase or control a property

But how do you know what the property value actually is to use in the equations.

Canandaigua as well as other portions of the Western NY area, are great for investments, as long as you take the tax liability into the equation, as well as new state laws that took effect last year, that need to be accounted for, so you go into any transaction eyes wide open, and all (realistic) numbers in the equation.

Around here that equates to ~$6k & $12k respectively.

I would equate the timing of where we are at to early 2007.

Have you read Hal Elrod's newest book The Miracle Equation?