Solution: Know what it will cost in time and money to foreclose and factor that into your ROI calculations.

Eugene and Bend have great AirBNB market potential but I worry about cleaning/turnover services being reliable and they are too far for me to drive to on a whim.

Acting on that deal depends on a number of factors for me.  

Net $620 or $155 per door, meets Brandon's $100 minimum per door.However, based upon the post, I don't think all the expenses are factored in.Terry

And FHA buyer are driving prices up to the point that not only there is no cash flow but you are going to be in negative.

Two big expenses that really factor into decision making.

But how do I factor in the potential of adding units?

It seems to be high for a 2 bedroom on a spotty area but  if UoM is driving the demand , it is understandable ..

To me, that tells me it's a "guess" based on "fudge factors" which are based on "nothing" because of the lack of actual facts within the "fudge factors", and lack of any true analysis within the "rule".Third, if the rule has no real basis of facts, or analysis, and is not really a rule in the first place (or the 2nd place, in my order), then I'd say the 70% Rule is about 0% realistic...give or take 70%.

I got a car with four wheels and don't mind driving or doing the legwork to help out of state investors analyze a deal :-)Most of what I do is SFR and 2-4 unit residential (as that's where the biggest pool of buyers are).