I have a client in INdy that does this and one in B ham as well... its coming back.. reason being the turn key guys profits are being squeezed and the buyer can get a better buy if the turn key guys don't have to take on holding costs..

The 70% rule is for rehabs, which I don't do a lot of, but for non-rehabs the software I share with people doesn't use the "50% rule"... it just uses Fannie Mae's 75% math.50% rule: Rent * 50% - P&I = cashflow.This implicitly assumes that property taxes in California scale up as rents scale up.

In general, if you are screening properties then you want to look at the 1to 2% rule (rents => 1 to 2% of asking) or the 50% rule (50% of the gross income to pay PI).

If rental properties in your market normally only get rent in the .8% to 1.2% rule (rent divided by the purchase price) than it seems like you are on the right track.  

Sometimes you just can't get stuff through...It is not like owning your own duplex where you are the boss, leader, and supreme ruler (with your spouse or partner if you have one)....

Is that rule really one that anyone follows?

There is no rule rent must be raised in $50 increments.

It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest. 

Look up the 50% rule.  Realize

As a general rule, real estate holding LLCs should be created in the same state as the property.