You should be measuring this property by a few different metrics. 

You’re also using the wrong metric.

Also any tried and true metrics for determining a good deal with vacant lots would be very useful. 

Part of the mortgage process is affordability, and a key metric of this is the 28/36 ratio.

(We also have a minimum profit # dependent on the ARV)I say currently using 30% because we'll periodically adjust the % based on other economic metrics we monitor.

Assuming you are looking for something more hands off, investing with an experienced operator as an LP is truly passive.Return wise, here are high level metrics I target:17%+ IRR2X Equity Multiple (5-year hold), 2.5X (7-year hold), 3X (10-year hold)7-8% Year 1 cash on Cash, opportunity to get to 10% by Year 3

This would equate to $1,550 per month over the course of 50 months which fits into the 2% rule...I ask this because, in my opinion, this is a pretty good deal for me and I would like to use a simple mathematical metric for evaluating purchases like this in the future.Does anyone have an idea on how I could evaluate this correctly?

Because it does not paint a full picture of how the two investment compare beyond the current point in time and it does not help identify exit points where the investment could be - or should be - disposed.After all that, I'm sure it will come as no surprise to you that we do not make an investment decision based on a single ratio or metric.  

Can they provide you with school ratings, crime statistics, area demographics and other important metrics for analyzing a neighborhood?

I also haven't figured out the cost savings on not renting as well because I couldn't find a metric to calculate the growth rate of rental prices in the area, however for the same bedroom, sqft, and area the median rental price is around $2,200 - $2,500Excel Spreadsheet of Analysis