The biggest factor and reason the prices are so low in those areas is the super high tax rates in some of those towns, if the taxes are worked into the equation and they work it may be a good investment, I just know I've had clients look and after looking at taxes the math didn't work out. 

I’ve positioned myself to cut the buyer variable out of the equation. 

Using the rents to calculate value is great for investors because it takes emotion out of the equation and emotion can make you lose a lot of money .

My wife and I have a pretty nice income which equates to an extra $5k a month disposable which we’ve been using towards our debt pay off (my truck) which will be paid off soon.We are starting with SFR but plan to move multifamily within 5years.

I was trying to incorporate the higher rent that I'm currently paying as renter but which wouldn't be paid if I moved into one of those units into the equation.  

And showing that as $1,500 of “cash flow” does not equate to a real life successful investment. 99% of these type of things are fit for the trash.

Any advice would be great, if I left anything out of the equation, please let me know.

If you indeed find a good deal, an you use an LLC as the holding structure, you can also assign a higher percentage of the profit side of your K-1 ... or define a preferred distribution for that member that would equate to 10%.

Does anyone know of a cheap answering service that would do (what equates to) data entry while taking calls from sellers?

Break it all down, and it equates to an 11% interest rate on that "2nd mortgage portion" of the loan above 80%.