Tenants are more likely to break their leases.I would consider all possible negative aspects of tenants and multiply risk factor by 2 in deciding to invest in rural areas.

And if anything is left over youtake that number and multiply by 4 and this is your max purchase amount with 0 down or PMI again. 

@George Foster is it possible for an investor to do a ballpark rehab estimate using a per square foot multiplier?

Separately you calculate your preferred return in the same way by having a starting accrued preferred return (should be $0 to start in the first quarter), accrued pref for the quarter (multiply the ending capital account balance by the preferred return rate, divided by 4 because this is quarterly), preferred return distributions, and an ending accrued preferred return (a sum of the above three).  

It's likely just taking ADR (average daily rate) and multiplying it by 365 days * Occupancy Rate. 

It's a great way to multiply your/their retirement.

Find the median income for a household then multiply it by 3. 

Rent Multiplier San Diego rent multiplier is 14.1 annual rent. 14.1* 13k * 12 months = $2.2M. $2.2M - $900k - $800k = $500k profitSQFT Margin The neighborhood is about $700/sqft.

More than 4 units use commercial loans and are valued based on the income (not including debt service) and the Gross Rent multiplier. 

Now multiply this over 4 houses.