Also, when I was making offers, it was just over a week before the government changed their lending rules so I either had to purchase a place or wait and save up even more of a down payment otherwise I would have been priced out of the market.  

It's very easy to get into financial issues just doing B&H's.

Servicing companies are almost a must when foreclosing especially on Non-preforming notes, unless you have intimate knowledge of servicing and foreclosure rules...

I am familiar with the 1% rent rule which would imply that I should be looking to get around 3500-4500/ month for a house in this price range.  

If things were easy everyone would be doing it.You need much more reserves for commercial as your first check takes longer maybe 6 months or more versus residential in a couple of months.

Do I go with the 2% rule on rents I hear all over BP or the 0.8% rule on rents from The Millionaire Real Estate Investor by Gary Keller?  

This is an easy way to pass the coursework as it is open book and online, but I don't think it's the best approach to prepare for the license exam.  

I started with Wells Fargo as they are my primary bank and I have a good relationship with them.Is there a general rule of thumb for interest rate offered by banks, big or small?

Do these number Monthly Gross Rents $ 4200Monthly Expenses  Vacancy       $ 336 (8%);  (including here since 50% rule includes vacancy as part of expense)  Prop Mgmt   $420 (10% of gross rents)  Insurance     $208 ($2500 yearly; quoted by insurance agent)  Prop Taxes   $680 (2.9%/year of assessed value; actuals; eats up 15% of gross rents)  HOA fees      $330   Maint Reserves:   $420 (10% of gross rents)  Maint/Repairs       $84 (5% of gross rents)Total Expenses : $2478 (59% of gross rents)  NOI:   $1722  Mortgage: $1215 (25% down @ 5% interest)Approx Cash Flow: $507/month (about $125/unit)Cash-on-Cash: 7.2% (Assumes 25% down + 3% closing costs as initial cash requirement)Thanks,Jacob  

Take it easy!