Strategies and Philosophies: Multi-part question

[Todd Gustafson]

I've been reading some on landlord mentality. It's led me to a few things I need to clear up. I'm a newb and still in the absorbing information phase.

This may be easier as three seperate questions. Here it goes:

1) Tell me if this is correct regarding the 50% rule. If I conclude a property will produce $1,000 per month rent then $500 per month will be consumed in expenses over time. This does NOT include a mortgage or note owed on the property. Am I correct or missing something?

2) Is there an industry standard checklist for expenses? I've seen a few personal lists and would like to see what I'm getting into - LOL.

3) If question 1 is true, how in the heck do you cashflow? Do most properties not produce income until paid off? It seems most any note owed would put you in the red, unless you got it for next to nothing.

I'm sure this has been addressed before. Guiding me in the right direction is most appreciated, especially when it comes to screening and business organization.

TIA