Quickly realizing that it is very expensive to live out here, so it challenging to find properties that would pass the rule of thumb tests (50%, 2% rules, etc).

Plumbers are expensive when it might be a 59c part at Home Depot.If you bought your house for 200k and it's worth 190k it might still be worth it to sell.

Ankit Patel You may want to add an expense for assessments.

I've been looking around in the sac area and they are still expensive.

I think out of state will be my first investment due to the pricing in my area.....it's soooo expensive!

CA is very expensive right now so it makes this decision difficult, I would personally spread it over multiple SFRs or a small multi if its a good deal.

When I used the same 5.7 cap rate on the adjusted expenses and income the NOI was 34,020 the valuation calculated was 596,140.

So this brings me to what ideas and questions i have: i am looking at a nearby new construction multifamily property (townhouse), where the area/location has great schools and convenient  to many amenities such as shopping and easy access to downtown.Also, this townhouse is a new construction property and should reduce or eliminate  my expense cost for the first couple of years due to warranties.  

Unless my understanding of NOI is incorrect.Isn't the Net Operating Income the income generated after expenses are deducted, meaning the cash the owner gets after paying the operating costs.

I was just using a standard 30 year conventional mortgage to analyze the expenses but would like to find a way to analyze it with hard money.