But only under certain conditions and only if you factor macro as well as micro into your decision making process.  

Picking the best option has a lot of factors..

Based on my own experience, a key factor is patience.

In addition to cap x, repairs, management, and vacancy - you may want to factor in rent collection and eviction (time and $$$) and see how you feel after that.

The amount of financing is not a factor in calculating the capital gains tax on the sale of an investment property.  

I don't know cost details yet, and obviously that's a huge factor, but I was just curious if anyone here had given it a shot and how effective it was.

Those improvements are probably already factored into the price.Might make sense for owner-occupied considering you would not have another housing payment and or cash purchase which don't sound like a good fit for you at the moment.Nice job of coming to a decision based on good data instead of "ballparking it."

I use 55% to 60% expenses of SGI depending on factors that might cost me more in a fringe area.  

And always factor in active listings, sold listings, expired listings, and active/pending listings.

On the flip side, cashflow is not nearly as good as some other areas that may or may not be more exposed to the boom/bust cycle.So if you do find a good deal, it will probably be a good deal forever, and it will probably not lose significant value in economic downturns, but the price you pay for that stability is lower cashflow.