Is the 50% rule really plausible in scouting out deals?

usually new investors mis-estimate actual costs.for isntance, you say you'll make $100 CF. is that rent - PITI or does that include all expenses. have you used the 50% rule? (rent

Hey @Rich Hama welcome to BiggerPockets!

I even have a drywall ruler you can use too.

The OP also said he left money on the table when he sold the paper for a 50k profiLets just use the popular 70% rule really quickly.

Look at it in the eyes of the 80/20 principle:20% of your properties give you 80% of the return20% of your tenants can cause you 80% of your problemsSell the properties that give you the most headaches/issues and least profitability  More info on the 80/20 principle:https://www.strategicinvestmentrealtors.com/blog/andrew-schulhof/apply-8020-rule-real-estate-investing 

I don't think the 2% rule really applies to a $100k SFR.

@Nathan HuiHad this discussion with someone yesterday and some compare it to using a ruler vs a tape measure.

Example:- House = $100,000- Downpayment = $20,000- Loan #1 = $80,000- Rehab = $20,000- Rent = $1,000 / mo (Assume 1% “rule”)- Re-evaluation = $150,000 (assume)- Refinance (80%) Loan #2 = $120,000- Pay off Loan #1, subtract rehab to see gains- Gain = $20,000 for repeat on next down payment on property 2But now you have to a loan of $120,000 rather than $80,000 and your tenant is still paying $1,000 per month from your previous calculation.

Have $100000 to invest going to use the 1% rule(rent must be 1% of purchase price) and the 50% rule ( half income goes to expenses).