Issue with 50% rule (guideline)

[Joshua A. Lenninger]

How's it going everyone? I have been doing some research and I've known about this 50% rule for a little while but never quite understood when applied to property. Every multi family property I use this screening method on always shows me upside down on cash flow which I don't see possible, but then again I don't have experience in owning property or being a landlord. I live in California and prices are high, but in turn rent is higher as well. So I will give example of property I am evaluating. Property A; Listed @ $360,000 Est. mortgage @ $1,800 Property tax @ $1,336 Monthly rent @ $3,250+ 50% rule applied 3,250/2= $1,625 $1,625-$1,800= in the whole Some info on the property Over an acre of land 2- 3/2 homes and 1- studio. 1 3/2 rented @ $1,350 and studio rented @ $700 as for the other 3/2 may be empty not sure. So is this just a situation where the rule doesn't apply? I don't see how the monthly expenses could be $1,625. Also could talk down listing price some I'm sure.