There are hundreds of ways to invest the money, all depends what fits your personal goals the best. 

And should you only look for and buy properties that fit calculations for that strategy?

How does this part fit in?

It simply depends on if it fits your model.As for how to structure the deal with the investor...there is no standard. 

I see so many properties that are fitting my investment criteria, only thing is they are halfway across the country and I don't know anyone there.

Yes, if it fits in our budget.

I would keep mailing them if they have a property that fits your investment strategy.

Than we were transferred to California where the houses that were in teh locations that fit our model were new.

They don't fit the 1%, 2%, or 50% rule but the low vacancy (currently none), appreciating rent/market, lower expenses and our ability to self management allow us success in this market.Another great resource is individuals websites located in our signature line.

Start by reading this: http://www.biggerpockets.com/real-estate-investingTake your time and listen to all of the podcasts, then you can figure out what niche fits your needs and abilities best.