Rules of Thumb - Intro course

[Danielle Johnston]

I was just watching the free videos about the 50% and 2% rules and something didn't quite make sense. I understand that the rules would help you determine if the property cash flowed and that the 2% one was used first, while the 50% was used more like a final factor (in the example).

What doesn't make sense is why the property was deemed a bad idea, wouldn't the fact that the 50% rule gave 0 cash flow (rather than negative) mean that the investor would still be able to make money on loan pay down? Sure, it would make more with a cash flow on top, but just because it doesn't means that the investment is a bad deal? Isn't the fact that there is one wealth generator good?