So the areas you are looking I think is an easy area to find good rentals, but they have a price. 

If you deed your ownership to a trust - your mortgage or Deed of Trust might still be tied to the property, which makes it easy to ruin your privacy.I am not an attorney nor giving legal advice.  

From what I have read and learned, it is not an easy task but for me seems to be one of the more self-fulfilling opportunities I could pursue.

Unit 2: 2 bed, 1 bath Rent: $700 per monthUnit 3: 1 bed, 1 bath Rent: $625 per monthUsing the 50% expense rule with the calculator it stated that this should cash flow $460 per month. 

Is it within the rules to do private lending for a property that my father in-law holds the title for? 

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

For instance, you have the 70% rule for rehab and fix then you have the 2% rule and then 50% for buy and hold these are some guides on how to determine if a property is worth buying.  

You could check it easy enough with MLS access.However believe when I say it is highly unlikely they are falsely advertising on this.

Is their a rule of thumb for this sort of thing, percentage wise?

Also some new landlord rules up in Seattle are making it an unattractive market.