. ;-)   But it's NOT a cap rate, NOR a crap rate...mmmm  can we call it a de Hart rate? 

Meanwhile the investors went broke trying to pay the hard money loans and the greedy landlords are now in foreclosure due to no mortgage payments being paid.How does my state allow this crap?!!

The market dynamics where you are at will be different, so if you suggest this and hear back from your fellow realtors or other people "we don't need to do any of that crap in this market," that might very well be the correct answer for your market.

@Nick L. that's always a crap shoot.

However, I don't think you can exclude an entire city for investing, but the deal you have above is crap, unless you can get significantly higher market rent.

The seller has to be willing and able to list the property and provide a crap ton of documentation.....for not much benefit to them. 

The first guy is full of excuses and crap.  

This agent has been lied to and given false assurances by her go-to lender, probably repeatedly, and based on that she may very well be exposing first time homebuyer $45k earnest money deposits to a crap ton of unnecessary risk (She didn't say WHICH clients she was using the 'no contingencies' trick with, so that could be incorrect).

or same old crap? 

I have heard this crap for decades and I am sure it will recirculate again.