50% Rule and Cash Flow

[Trey Leigh]

If I understand the 50% rule correctly, half of your gross rents goes to expenses including a vacancy allowance, and the other half goes to P&I and cash flow.

Using this rule, what minimum cash flow do look for on top of P&I on:

1. A property you believe will appreciate.
2. A property you believe will not appreciate.

Also do you have a sliding scale of cash flow you want to see based on the lenght of financing?

I'm just looking for a conservative way to evauate properties.