Sounds like you have a good strategy to meet your goals.  

What I'm wondering is, what are the standard formulas that an experience investor would use when considering a new property. 

They are telling you that their fiduciary responsibility is to You, which is a higher standard than that given to just a "customer".  

well assuming it meets the QM rules for owner occ.. etc.the scenario you presented is not a very attractive note unless the discount was HUGEPV is what investor look at.... what rate of return they want and in notes its usually 8 to 12% APR but with 100% leverage most investors will only pay on face value about 60 to 70% LTV ... so right off the top you would be taking a substantial hair cut.No secret what your trying to do.. but I surmise you will very quickly realize its not realistic .. the discount would be such that it makes it a no go.If your thinking someone will lock up their money for 10 years at 5% well thats not going to happen especially at 100% LTV... 

If the cash flow is only eight hundred a month it isn't a deal by any standard.

You learned your lesson.She is brave to push you like that when you have more power in this relationship in the long run.Put some sod in, do the math on that.Even if it is only a small patch of sod, it could meet the definition described in the email.  

A standard purchase and sale agreement will work. 

I always hear about meeting local investors but I'm not quite sure how to take that next step, or if I even should.

But they do help maintain the value of the area indirectly by maintaining a certain standard for the area.

@MikeYoung are you going to any of our local Real Estate Investors meetings?