A long time investor said you should be looking for the 2% rule and depreciation in those areas.

I am confident that you cannot find one especially if the purchase is financed.If you indicated cost of entry is less in the Midwest, cost of purchase is less in the Midwest, initial cash flow (at purchase) is often better in the Midwest, that much of the Midwest has more friendly landlord rules, or that there are places in the Midwest with lower property tax rates then I would not be taking exception to your statement.However, I know that you know that your statement is historically not accurate. 

Also should I take into account the 70% Rule when making my an offer?

Since the rules change all the time once you get closer to the time of buying the SFH you can look for a lender who will do the loan.

I look at Population & Job Growth, what major Industries/ Employers are in the market, major Airports ease of traveling from NYC to my new market, traveling costs etc, Purchase price to rent ratio I follow the 1% rule but in hot markets it gets harder to find.Markets depends on what you are looking for, if you want positive cash flow every there are a lot of markets that can accomplish this.

If you are looking at a roommate situation, you always use month to month, with clearly defined rules.

Eight of those members, each from a corresponding city council district, would be elected, while the mayor would select the ninth.State law restricts rent control only to apartments, homes and other housing units built before Feb. 1, 1995.

@John T.Looks like your father's position is that of a private lender or passive investor, as opposed to a partner.Even though he is your father, you really should define economic rules between the two of you. 

Would a HML tend to have the same restriction about a family member loaning me the down payment and the amount of time I had that money?

I ask as there are different rules if the property has been owned under vs. over 6 months.