Alexander Barcenas Many Investors that flip homes use the 70% Rule that says 0.7 x ARV - Repairs = Your Maximum Allowable Offer (MAO).

Wal Mart does not go to Coke and tell them that they want a 50% discount to retail price on 1 can of Coke ... know what I mean? 

-Homes valued 50-75k -Cash Out desired: 40-60% Is this doable with an individual property like this?

I'm interested in investing in Kansas City but I haven't ruled out Cleveland.

However, my California RE mind sees the prices vs rents and am bewildered by such statements.As of now, these are my desires in properties:a house or townhome built after 2000 - I prefer after 2003 turnkey condition MOST PREFERABLE, but not necessarily a requirement at least a 3+2 neighborhood well kept and not too much crime $50-$100K, short sales are acceptable Close to transportation and/or the fwy Relatively close to downtown and the airport (10-20 min when there is no traffic)Seeking cashflow, appreciation much lesser priorityFor rent of 800, the PP cannot be exceed 60kFor each additional $100 of rent, the max PP can only increase by about $12.5k.If you see immediate issues with these desires, PM me so that we can talk about it offline.

Assume high credit score (despite the old foreclosure), high W2 income, 2+ years rental income on the property in question, a primary residence FHA loan that's about 50% LTV, and very little other debt.Is there a good way to get at that equity to finance another rental or to use as capital for flipping?

They are typically 3/1's and between say $50-100K. 

That seems high for me – I typically target 2% (50 years).

That's the type of real estate investing I have decided to pursue, I understand there are others and that I should not rule anything out but one thing I have learned in my career is, if you focus on one particular thing, you become and expert at it. p.s. sorry in advance if my introduction is wordy.

We screen, including calling vet, charge a pet deposit and have rules in the lease about maintaining dog damage, flea/tick meds, and no disturbing the neighbors with barking.