Sounds like he’s a had a little success with a formula on paper and forgot this is still a people and relationship business KISS - if you gotta deal in a high demand CLE area let’s chat 

Just make sure you add in hoa fees into your formula.

The more they bid up properties the lower the "cap rate" goes (i.e. you can observe this just by doing the math on the formula NOI/value).

Brian Page Airbnb Formula

As far as delayed financing, here's my formula:70% of purchase comes from a CLOC.  

Using a my quick simple formula for even considering income properties of any kind is as follows.  100% current (never future) annual rent income times 60% divided by the percentage rate of return say for instance you want 5% rate of return then this property would be worth to you $1,353,600 and the owner would have to pay all other encumbrances  Higher than 5% rate of return you want the lower the sales price for the property.  

Your mileage may vary.I would imagine that you will get some calls, but there's no real mathematical formula to answer your question.

Using your formula, do you factor in taxes, insurance, expenses?

It covers these formulas and many others.

They use the debt coverage ratio formula to determine if your rent will cover your note and then some.