Help me understand this deal and 50%, 2% rule

[Matthew Stover]

I hope I'm doing this correctly. Thank you in advance.

3-unit apartment complex
Asking Price = $119,500 (I easily understand that this is way too high)
Total Monthly Rents = $1,235

Using the 2% rule, I would need the house to be $61,750 (61750*.02=1235 or $1235/.02 = 61750)

50% Rule says that $617.50 of Total Monthly Rent will be used for expenses.

So a $61,750 mortgage (at 100% financing, 8% interest, 20 year payback) per month is $516.50. I think I'll be able to get 100% financing if I can prove my assets, etc.

Therefore $516.50 (mortgage payment) + $617.50 (anticipated expenses) = $1,134.

$1,235 (monthly income) - 1,134 (Total Expenses per month) = $101 net income per month

I thought I'm supposed to be making over $100 per door!

Am I calcualting something wrong? Please let me know.

Thanks again!

Matthew08