50% rule in evaluating rental property

[Bade Raju]

Hello All,

           I am evaluating a property at 140K for a rental. The rent is 1200 per month.I inputted all the values in rental calc and found negative amount in 50% rule. What is expected amount in 50% rule? What is the general value that is expected in 50% value? If i get $100 in 50% rule should i go for it.

I am confused with brandon turner's webinar, as per that webinar he says  cash on cash at least 12% or 200$ cash flow. If i want to achieve this i have to ask the above property at 120K or so, which is highly unlikely.

Should i use 50% rule with some expected amounts or should i aim for 12% cash on cash. Please advise.

Any help is greatly appreciated. 

thanks

Raju