I have spoken with a couple of CA investors and they agree the project could potentially generate substantial cash flow.

Hi everyone,There are couple of ways to value the price of land in depreciation, such as the 80/20 (20% to land) and Using Property Tax assessor's values, or getting an assessment of recently sold lots in the area.I was discussing this with one of the CPAs, and he shared that if the cost of building the house is more than the purchase price, then the land is essentially of no value. 

Quote from @Ferrode Joseph: Hi Everyone, I have been researching for real estate investment out of state for couple of months.

A game like The Sims may have an engine in place to guide the preferences of citizens. 

For a couple mil you can generate income like Mit Romney.

With a newly rehabbed property that might work for a couple years, but in the long run 5% is a better and more safe/conservative estimate IMO.5.

A couple other key assumptions that I would advise "kicking the tires on" before moving forward:1.

I'd prefer my screening criteria to be as tight as possible while still complying with all laws.

I am a licensed gc in my state here in Shelby NC and I typically had the properties back in rentable condition within a couple of months.

I would prefer it to be my handyman but if my tenants have someone reputable, all I ask is for them to send me their business card.