FHA + 50% Rule = No Cash Flow?

[Joe Ferguson]

I am having an extremely hard time finding a single deal that will work with the 50% rule using an FHA loan. In almost every case the cash flow is negative with a few around break even. This is using list price and existing rents being paid by tenants.

Even with assumptions (not a fan) of buying at a lower price and raising rents by $100 or $150 to market, the 50% rule still yields break even or very minimal cash flow. Basically the extra $200 or so per month that you pay with FHA over conventional is eating the cash flow. At 42% expenses which may be more accurate for a duplex, some deals start to make sense but are still short of the desired $100 per door. Overall, I feel like I am fudging numbers at that point to make it work. I would have no problem achieving this on many deals I have looked at with conventional.

Is this just the price you pay when using an FHA? Tips or Advice? It's obviously possible but it looks like it would have to be a screaming off market deal.

I have $15K and saving $1,500 a month. I can get a 15% conventional on a duplex. Should I just wait and go that route?