Rental Property 50% rule, 1% rule, cash flow estimates

[Doug Hinkle]

last year I bought a 3b2.5ba 1/2 duplex for 100k. I had it rented for $960 within a couple weeks of closing, and did nothing but clean the place. When it rents again I could get $1000, I'm close to the 1% rule. $1100 might be possible, but I would have to spend some money on updates. The other "rule" I appear to have broken is the 50% rule. At the end of the month, I'm cash flow positive $140. When the 50% rule is applied (i used 40% because I'm doing the PM) I'm breaking even. I was already setting aside the $140 to build a cushion for repairs or updates. When I re-calculated the numbers at 100% financing I'm cash flow negative about $140. I understand that it appears that I forced cash flow into the deal with the down payment. Still, I'm estimating a first year 8% cash-on-cash return, much better than idle cash. After all that, I'm wondering if i overpaid/under rented this place. I'm looking to add another property or 2, and i want to make sure i use good estimating tools. should I be using 40/60 estimates at 100% financing to determine a good deal?