Fudging the 2% and 50% rule

[Mike McKinzie]

As has been discussed quite heavily on these forums, as investors, we look to 'gross' 2%+ of the purchase price and expect 50% of the rent to pay for all expenses except the financing.

Do any of you 'fudge' on these parameters? For instance, would you take 1.5% on a newer house in a low property tax state? Do you use different rules when you buy CASH vs. MORTGAGE? Is there a 'value' in buying a house with an established tenant? A fixed Section 8 rental rate? Is there value in buying a home in a 'nicer' neighborhood vs a low income neighborhood?

I would appreciate any and all thoughts on this matter, thanks.