50% Rule / 1% - 2% Rule

[Nick Weidner]

Disclaimer... New Investor, purchased my first duplex this past Sept.  Now to my question:

I understand the 50% rule and the 1% / 2% rule, what amount to you apply the rule?   For example if you purchase a property for $125K an you put down 25%.    What amount to you use when crunching the numbers?   The full purchase price + rehab?   Only the Loan amount?  or  The loan amount + rehab?