You get the cap rate from closed sales of similar properties. 

This property is a short sale and the the seller was in the process of filing for bankcruptcy.

My goals are simple; 1st land a job, get a asociate degree in business  (real estate sales/management ) and live a frugal and happy life with my family.

I include another month of holding costs in my projections to accommodate extra time needed to close on the pre-sale.  

Depending on how remote you want - Millcreek canyon has some places up for sale in the 200's.

That location is probably one of the best places to be in America to be an investor.Locate in a market that is convenient for you and is popular as far as sales go.  

My area of expertise is purchasing property from Tax Sale auctions.  

Typically the amount for the foreclosure has no bearing on the listing price or sales price of an REO.

I only ask because I am in the same boat, working a full time job as a construction project manager but wanting to get my license to be able to show myself homes and cut out the sales agent commission.

@Spencer Trotman,You may want to re-think your approach.Why not just drop them a hand-written letter in a hand-written envelope with a 1st Class stamp stating your interest in buying a home in their neighborhood and asking if they know of any that might be for sale?