They are related, but only to the effect that a larger downpayment increases your cash flow.  

So this makes effective use of your nights and weekends critical. 

Has anyone out there purchased an investment property in a cost effective city while renting in an expensive city (such as Toronto)?

So I've come across 3 properties for sale, (8 units total + 3 bay garage), seller is willing for seller financing, and all communications are going through a third party who has agreed with me when I told him I believe the seller has an unrealistic view of what his properties are worth.I was initially only interested in the first two properties because that are on the same lot and need to be sold together.

@Scott Costello Thanks for the info, and I communicated with Trevor - there's certainly a larger separation between Investor Carrot and Generation Web (the SEO provider), than it appears at first glance. 

Had I seen it a couple of months ago I would have told you that you are dealing with professional tenants and instructed you to terminate all communication with them proceed to a eviction and offer them nothing to voluntarily leave.

Once you know your What you could sell them for, then you can answer the question of what is the effective ROI based upon current valuation.

How can you possibly do it that cost effectively? 

You don't know how to wholesale effectively, and you want to virtually wholesale? 

One of the most effective ways to get deals is by following up with a seller two or three months down the road.