I've decided to revisit flipping homes and I'm curious how realistic do you think the 70% Rule is?

@Raymond KingAgent from Phoenix here, and the thing to understand about the 2% rule is that it's really intended for properties in the $50-100k range.

MD has a new rule for licencing which is tough to get from what I understand.  

My wife has been very supportive of this dream as I've begun to jump into it and our three kids are a good motivator to plan well for the future.While I currently live in California, this is my sixth state to live in, so I've gotten to see some vastly different areas of the country and intend to start my investing career somewhere cheaper than San Diego.

Homes must meet the 1% rent/price rule and condos/MF must meet 2% rule.  

I've always been taught a good rule of thumb is "If it's too good to be true, then it probably is." but when it comes to real estate, wholesalers seem to find these properties by the dozen. 

The low down payment helps me keep a lot of cash in my own pocket to support the rehab and stay liquid.Private money is nice, but sometimes can be difficult to use in conjunction with hard money. 

This lot will support 2,800 buildable square feet so we are looking a building a main house then an ADU (Additional Dwelling Unit).  

It looks like this:ARV x 70% = All-in Costs Target - Rehab Costs - Holding Costs - Closing Costs =Maximum Allowable Offer or Purchase price If you can follow this formula you should always be able to get all or most of your cash back.Now to make sure you have positive cash flow you still need to be as close to the 1% rule as possible.  

I am considering renting it out for a small period of time, then selling.What are the rules for doing this.If I lived in it for 2 years, of the past 5 before the sale takes place, do I still qualify for the exclusion?