If I were looking at a non branded hotel (i.e. not a hilton, marriott, etc brand) I'd have to think and research deeper to make sure the property has some kind of attraction or reputational value that draws guests.

@Steve Milford   Agreed  pocketdeed once I delved into it is a non starter... ?

Market Indicators and TrendsThe BiggerPockets Flipping book delves into each of these in more detail, include specific metrics I look for in each of those categories...

@Joel Florek I've heard this sentiment a fair bit concerning realtors, they often think it's a good deal, but fail to dig deeper other than making a few comps with neighboring properties.I just finished reading Ken McElroy's ABC's of Real Estate Investing, and need to study more on the valuation of such a building.

Sit your friend down and dig, then dig deeper.

Dig deeper and conquer your goal of 35 SFR. 

I plan to dig deeper in this meeting.. trying to get my ducks in a row today/tomorrow.

Going even deeper what clothes a Realtor wears to an open house can make a difference.

Then go find a great deal.Oh, and check out @Brandon Turner 's book, he delves into wholesaling along with a lot of other great stuff.http://get.biggerpockets.com/nomoneydown/

If you have a potential rental income of $2000/mo and a PITI of $1200/mo, that already shows that the numbers won't fit within the 50% rule... however looking deeper, I usually use the following numbers as an estimated budget:10% of gross rents for maintenance (keep this money tucked away until you need to make repairs)5% of gross rents for capital expenditures (I usually recommend 10% if the building is 50+ years old or has not been updated for a long time)10% of gross rents for management OR for vacancy (If you have a professional property manager hired, they should have a tenant lined up by the time your current tenant chooses to leave, effectively meaning you'll have a vacancy rate of 0%.