Even if they got the home done it would be a wreck within a few years and rents would be very inconsistent to non existent given the tenant matrix in those areas.. not what Morris states on his website that D class tenants are just happy to have a home and are thankful to you the big investor for providing them a home.. nothing could be further from the truth in any of this. the Model is broken and those who invested in it just did not realize the reality of it or the logic.. they just figured a 50k home would be as good as a 100k home.. 

If this follows any kind of logic their asking price of $235 sounds reasonable to me. 

Using the 70 multiplier follows the same process that a lot of people use when buying SFR on a 10x of attainable monthly rent - same logic and math. 

Is my logic flawed somewhere?

Following your logic, the same website you support supports and illegal activity?

In fact, if you manually follow the logic on the forms, you can see that the software is doing it correct.  

It would seem to be the same logic you are using on the contractors. 

The later seems logical, but not sure.

Let me know and I can explain this logic further....hope this helps.

The requirement to use a licensed and bonded GC for flips to me is much more logical.