Potential rental deal but having trouble with #'s

[Matthew Dovner]

Ok so I have been doing a lot of reading on rentals and I know the 50% rule is the standard rule to go by when analyzing these deals. I have a potential deal on a 2 family house for 375k but needs about 60-80k to bring it back to its glory. So ill be in it for 450k. I can get 1600.00 per unit for 3200.00 total. According to the 50% rule this is not a good deal because 1600.00 is my NOI and the mortgage if I get 100% financing is probably around 2200.00. The thing is, the house is worth 525k or more after being fixed up so I am not really understanding the math. I could flip it but I am trying to build up some rentals for the long term.

What I am confused about is, when you guys are analyzing these deals are you doing that with the expectation of 100% financing? Or are you putting money down? If you are putting money down, are you putting down a certain percentage? I appreciate the advice!