"50% rule"

[Aaron Junck]

As far as the "50% Rule" goes.

When you evaluate a property and you say 50% of the monthly gross rents should be figured for expenses prior to servicing any debt, does this vary much if you are going with new construction or would you still figure 50%..

Correct me if I am wrong or ignorant, however I see as far as repairs go there shouldn't be much at all for quite some time due to the fact that is new.. new appliances, furnace, AC, roof,paint..etc. I realize that you still need to budget for these expenses, bc there will come a time that you will have to repair something. I am just curious since this isnt a 15-20 yr old property that may need a new roof in 5 years or a furnace etc..

Also this 50% rule would include property management,right? which would be ballpark of 8%???

Can someone breakdown this 50% Rule for me maybe?
Thanks