Thoughts on 50% Rule

[Josh Mitchell]

While I know the 50% rule isn't always a direct measurement of things, for this purpose I am going to assume it is. So, being a newbie, it is my understanding that 50% rule simply states that 50% goes to costs of property and then 50% going to debt service (and the remaining from debt service is your cash flow).

My questions is simple, does this apply to condominium units or just SFH? Is it safe to assume that the HOA fees associated with the condo's, cover a majority of the 50% side of costs, which would more than likely be less than 50% of what the rent is being charged. If it does not necessarily apply to condo's, is there a rule to go by with these units?

While the HOA fees do diminish cash flow and can adjust year to year, it seems to me that by purchasing a condo within an existing HOA could actually save you money (no large expenses, i.e. water heater, roof, etc.)

Thoughts are much appreicated! Thanks.