It's good to know that his numbers may not necessarily apply.

Today's exam question is: What is your understanding of the "70% Rule"?

While reading the Ultimate Beginners Guide I was introduced to the 50% Rule and the 70% Rule, and the 1% Rule I have heard was bumped up to 2%.

2) Concept number 2: I always though that Einstein meant stock market,  and never in my mind applied that quote to real estate.

Most of my estimated expenses far surpass the 50% rule.

Others apply a little more common sense to the equation in addition to the analytics.  

I think this is why internal rate of return exists - I know we're talking about rules of thumb, but if I've got a property in an area expecting lots of rent growth, I can add value in other ways, etc. over the course of a few years, the present value of those future cash flows and any other liquidity events become very important and it could make sense to accept a much lower CoC in the near term. 

Enforcing rules is best for a child.

I’ve had the house appraised and I’ve got over $80,000 In equity in the property, I’ve come to the realization that I can now either do a cash out Refi on it and pull the equity out and repeat the process very similar to the BRRRR process it I can 1031 exchange it and look into maybe applying the equity into a larger 15-25 unit property.

To learn about the rules, please see the following.https://www.irs.gov/retirement-plans/plan-particip...Also, as stated, if this is a former employer plan you may want to consider transferring it to a Solo 401(k) plan if you are self-employed, as the solo 401k plan can be invested in real estate.