Whats is your take on the 50% rule when analyzing a property?

[Yasmani Delgado]

I see how this rule can be useful, but I think it can't be a deal breaker.  

One can make the argument that It is too conservative. It may only apply to home run investments. However, it may turn people off to nice investments that can give you anywhere between 12-15% ROI (singles, doubles, and triples.

I'm far from an expert and I want to learn different ways you guys analyze deals.

[Todd Dexheimer]

It depends on your market and the age of the property. In the upper mid-west if you pay for the heat, then expect to be closer to 60%. If you have a property that is less than 10 years old, then you may be able to run 35% or less. The 50% rule is a gauge to see if you are in the ball park. The most important rule is to get to know the sub-market you're buying in and the property type and study what they are running on. If your competition is at 60% cost to income, then you should be close to that