Buy a trailer park at a 2 cap price, but syndicate a reality TV show about all the hilarious shenanigans and drama, and poof maybe now you're at a 20 cap.

A 3/2 or even 3/1 on the other hand should rent at $1250 - $1400 all day long.You can probably find comps to support the $120k price and if the home is nicely renovated it may actually sell for that much, but I believe most 2/1 homes selling at this price are the ones selling to owner occupants, such as parents buying a home for Jr to live in during college.

To me, that tells me it's a "guess" based on "fudge factors" which are based on "nothing" because of the lack of actual facts within the "fudge factors", and lack of any true analysis within the "rule".Third, if the rule has no real basis of facts, or analysis, and is not really a rule in the first place (or the 2nd place, in my order), then I'd say the 70% Rule is about 0% realistic...give or take 70%.

You are expecting 2189 a year at your calculations, however, its actually 2 units, so you are getting 1050/door/year which is pretty thin for the privilege of a mandatory job as property manager for 2 tenants, since you dont have enough budget to hire a real PM and scale your empire.

There are still a lot of moving parts and different pieces that need to come together for escrow to be actually closed. 

In reality I dont want to put my money out and theres those that have no resources to large amounts of cash, loans, etc.

The reality is that what you are experiencing is what wholesaling is like.

More specifically what to look for in the the actual building/property and the city or market.

I found a property that I would like to purchase back home, but it’s not for sale, I see the property as a good buy and hold property and it actually is the house I grew up in.

What you are actually doing is buying cash flow at a very high cost.