Purchasing Rental Properties And The 70% Rule

[Jesse Bellavance]

Is the 70% rule mainly applicable to distressed rentals to be flipped?  Potential properties I have looked at run about 100,000.00 and for the area bring in about 1000 in rental income. Most of these houses seem to be in good shape upon first look or need minor work.   I would definitely offer less than the 100K but maybe more in lines of 80-90%.  I live in the Central Virginia market of Charlottesville/Staunton/Waynesboro.

I am doing a lot of researching and reading practical books on real estate investing so please forgive me for ignorance concerning the subject.

Thanks for any advice.

J.