Depends Stinson, but if you have the ability to market to such sellers and get them under contract for good spreads for flippers, you could certainly wholesale them and the advantage is that your "all cash" buyer only needs cash in excess of the sub2 loan so there is a benefit for your buyer as well, thus creating a potential for a tad larger spread on your end.If anyone does get such deals they would like to wholesale, please contact me, I could be interested, but only for flip opportunities, no buy and holds.

Some discussion of how lower class properties can generate expenses in excess of the 50% rule of thumb would probably keep people from making the mistake of using this technique as a catch-all even though you qualified this at the beginning of the video5.

My parents rent out 5 excess parking spaces at a duplex they own next to Eastern Washington University. 

Undoubtedly with an eviction you'll be refunding their excess after they move out - but then I'm guessing a California eviction takes some time and you'll be holding onto the cash during that time.

Operating expenses also include advertising, management (even if you do it), entity maintenance, legal fees, evictions, court costs, damage done by tenants (in excess of the deposit), utilities paid by the owner (at least during vacancies), capital expenses (not technically an operating expense), etc (I could go on and on).

That sounds excessive.

It seems properties  in some areas of San Francisco are selling in excess of the listed price and properties often requiring moderate or extensive repairs are being bought at prices in excess of ARV.

Some owners are asking for prices in the excess of $1m and I wouldn't be surprised if they received close to ask.

Continue as is, refi and buy more, use the equity as collateral for your 20% and buy more with nominal out of pocket cash, take some of your excess cash and make short term high interests hard money loans, cash out and go buy an island in the caribbean, etc.

I agree with Chris - put in all the numbers, save for all expenses, be conservative, and expect to SAVE (not use) all of your excess cash flow.