We found a plot of land for sale that is wooded but has water, sewer and gas ready and also power close by (across the street).  

But, once you get the hang of things, the sky's the limit from there.

Some of the limitations with just calculating the cash flow is that you're not taking into account all of the sources of dollars coming in. 

For any client I work with that has limited knowledge on the subject, I extensively explain the home-buying process (including financing) whether they want me to or not.

We are sailors ourselves but availability always seems pretty limited (ie, lots of demand) when we look.

@Surendra Chawla and others, for the Phoenix metro area, I found a very useful resource called the Cromford Index.This is put together by ASU's Head of the Real Estate Dept (Prof Michael Orr).http://getyourphx.com/refresher-the-cromford-report/http://cromfordreport.com/index.htmlThis seems to be a very unique and highly useful index specific and limited only to Phoenix area.https://www.youtube.com/watch?

This method leaves a lot of stress and unknown factors off the table and limits the pool of potential buyers to serious investors instead of dealing with the potential issues of individual buyers looking to buy a owner-occupied unit. 

The issue I run into here are limits on how many mortgages I can have in my name from various banks.  

Replacing side walks on a city property that is out side the city limits just added 2 weeks to the project. 

If this is a foreclosed property (you said Fannie Mae was the seller), your agent should know if your state has limits on back HOA dues if you're buying a foreclosed property.