50 rule vs 5-10% expense itemized expense

[Ezekiel Tolentino]

So I’m using the bigger pocket calculator. When I put my expense in such as 5% repair, 5% cap ex, 5%vacancy I get a positive cash flow but on the 50% rule I get negative cash flow. I’m not sure which one to follow. Am I doing something wrong? 

[Joe Villeneuve]

Quote from @Ezekiel Tolentino:

So I’m using the bigger pocket calculator. When I put my expense in such as 5% repair, 5% cap ex, 5%vacancy I get a positive cash flow but on the 50% rule I get negative cash flow. I’m not sure which one to follow. Am I doing something wrong? 

 What you're doing wrong is trying to figure out whether or not you have positive/negative CF by using percentages that have nothing to do with the specific property you are analyzing.

Try using actual numbers for expenses and rent and mortgage.  You'll find something pretty amazing.  The actual answer, with no confusion, no conflict, no B.S., just the actual answer, that can be understood completely.  Why?  It's in actual dollars.  WOW!!! what a concept.