Direct mail is one of the most expensive ways to market.

And the other 50% of the property tax and 50% of the utilities as rental expenses.

If you can improve a property and increase revenue while decreasing expenses, the property increases in value. 

Your way is simialr to cap but doesn't account for expenses...

Some areas are more expensive though.

When considering conventional financing after the initial purchase, lenders will assess your debt service coverage ratio (DSCR) and having a strong track record of successful real estate investments can enhance your appeal.

Like around 2k/month after all your expenses?

This can be pretty pricey, other than the land and home it is my biggest expense-Permits, all kinds-Electrical installation-Any landscaping.

Quick rundown of the numbers:Purchase: $130,000  Mortgage and escrow: $1045 Total Expenses: $1195Rent: $1500Total cashflow: $305Primary issue right now is a 2 year buy back term for a DSCR loan that does have a large penalty for that first 2 years. 

Factor in ALL expenses like property taxes, insurance, repairs, maintenance, vacancy rates, and potential property management fees.2.