And I have one of my borrowers in the day he has a whole business model based on it.He buys these houses ( usually never looks at them) for 500 to 2k  then sticks a craigs list add with address and sells them on contract for 20 to 30k... with 1k down or so.. so he has his cash back..

Cash can grow over time, you can borrow etc.  

Should the 70% I can borrow be 70k not 100k?

I mean if they don't finance the renovation part do you have to save that money, borrow from a friend or how does that work?

I would definitely be  a borrower at these rates, then keep some cash reserves.

If you're really set on doing this, why don't you see if you can borrow the money from one of your parents and pay them back.  

For example when i first started out i had asked about 20 realtors i my area if i could borrow their commission (buyer agent's) and just pay them 60 monthly payments out the the rent cash flow, and 19 said no but 1 said yes.

@William EllisI am not familiar with your market but what I did here in mine was I borrowed hard money to basically cover the purchase and rehab. 

Due diligence, legal documents, finding borrowers, turning your capital, all of this can add up to as much time and trouble as wholesaling if you are doing it all on your own.There is the partner route suggested by @Mark Mynhier above.  

Without reading the regulations, I assume this would not be allowed:"Line 14Investment InterestInvestment interest is interest paid onmoney you borrowed that is allocable toproperty held for investment.