It entails the following steps:Calculate the Net Operating IncomeDetermine the appropriate Capitalization Rate (or ask your broker)Divide the Net Operating Income by the Cap Rate to arrive at an estimated valueWhile the steps are simple, the underwriting is a bit more complex.

The "50% rule" states that one can expect expenses on a long term average to total to roughly 50% of fair market rent, where the expenses include property management fees and capital improvements also but exclude principal and interest payments; principal and interest payments come out of the other half of the rent, and whatever remains is the net cash flow (if any remains).

You're reducing tax on profit from ordinary income to capital gain at the least and in the case of many of my investors - tax free.5.

First, solely for rental income (best rental yield) as first priority and capital appreciation as second priority.  

I would imagine things will change over the years if the imported capital keeps coming.

You would also add a lot of lender fees by purchasing all cash then quickly doing a cash out, so a direct purchase with a mortgage would be more efficient if you are really planning to have more capital to invest with and take advantage of leverage.

I was wondering if you considered big ticket fixes (e.g capital expenditures) as part of the analysis? 

The time, experience, and capital needed to make a hedged RE appreciation play is only feasible for a seasoned investor. 

My short term goal is to bust my behind to gain capital for my long term goal, cash flowing my life.

I assume I use form 4562 to report the start of depreciation of these capital improvements.