Help with first online property analysis!

[Nehemias Ponce]

Hi everyone! I am wondering if I can get some help with my first online/practice property analysis. I recently watched Brandon Turner's Quick Property Analysis Video and am trying to apply it to a property in my area. The property in question is a duplex listed at $225,000. Each unit is rented for $750 for a total of $1500 monthly. For the sake of this example I'm putting $20,000 down, leaving a mortgage payment of $961. Here is where I get hung up. The $961 doesn't make the 50% rule. I also have not included taxes and insurance into the $961 as Brandon suggests in the video to include that in the expenses. Also because the $961 does not not meet the 50% rule then I can not really figure positive cash flow (according to the video). And without positive cash flow I can not figure my ROI.

I know the 50% rule is just for a drive-by analysis and a rule of thumb only. But if this property doesn't meet it, what does that tell me?  Also, can anyone suggest other property analysis calculators that they like to use? I'd really like to start analyzing a few properties a day and just need some help figuring it out. Here is a link to Brandon's video below too. Thank you so much for any help you can provide! 

 https://www.biggerpockets.com/renewsblog/2013/02/1...

[Abi Wegman]

What does it mean if it does not pass the 50% rule?

It means this property may not have positive cash flow and you probably don't want to buy it. Of course the ratios are not comprehensive analysis but more like quick ways to rule out duds.

Basically, it's not a deal.

For ROI, by the way, you can absolutely still calculate it without positive returns. The ROI will be a negative number, which further tells you that it's not a good deal and you should pass on it.

Good luck!