I am only interested in Eagle Rock Resort as a vacation/secondary home. 

Yes - include ALL expenses in your math, including reserves for repairs/maint, capex, turnover, etc.

I don't know about your idea of maths but to me that says Midwest performs at 2X of CA. 

Top producing real estate agents in many market make over a million a year with a whole heck of a lot of them making 200 to 500k.. the other 60 % of agents will not make much but it could be a secondary job and they are not the primary income producer in the family.. 

On Page 134, he lists the following when analyzing a deal:Sales Price: $132,490.00Sales Expenses: $17,000.00Loan Balance: $55,004.72Total Invested Capital: $35,950.00Profit: $24,535.28I agree with his thought process here when he calculates net profit, but I'm trying to verify the net profit by adding up all the sources of income over the past five years in his example by doing the following:Appreciation over five years=$12,490 (see chart on Page 133).Cash flow ($297.73x12x5)=$17,863.80 over five years.Loan paydown: ($60,000-55,004.72)=$4,995.28 over five years.Sales Expenses are still $17,000.Doing the math, profit= $12,490+$17,863.80+$4,995.28-$17,000=$18,349.08There is a $6,186.20 difference from the net profit he calculates.My question is: Is this $6,186.20 difference due to the forced appreciation gained in the property from the rehab he does in this example?

Buying from secondary market or looking to originate / seller finance ?

However, for a commercial property or a commercial residential (5+ unit) property value is based on the income approach and reducing expenses in this case by producing electricity factors into that math and very well might increase the valuation enough to make sense.

This can change the math pretty quickly.

I guess it boils down to finding out if I can qualify for a lower-interest loan with a traditional bank/credit union, and if not, making sure the math still works with a higher-interest loan.

Let the math speak for what is best.