This deal doesn't meet the 2% or 50% rule of thumb, but it has positive cash flow and is in a growing market, according to the latest 2024 Top 100 data from BP. 

Then many years for the equity position to be recovered.2) let’s go no financing and use 50% rule so $900/month after sustained expenses

Quote from @Jaycee Greene: Financially, I'd only do it if you could convert to a 3x1 AND get at least 50% higher rent.I dont see getting 50% more.

Consulting a tax professional or financial advisor familiar with these rules would be a wise step before making any decisions.

Do you guys still apply that rule? 

my hope is to get a nice unit for my son at below 50% of retail.  

I am not able to take equity out of my condo because it is currently on the blacklist due to HOA fixing the roofing and a Fannie Mae rule stating, if more then 50% of the condos in that community are owned by investors, I may not be able to refi.

For REP status federally, you must meet two requirements: work 750+ hours in real estate activities and spend more than 50% of your total working hours on these activities during the tax year.

@Seidy Lasker Wash sale rules apply to stock options if they are deemed "substantially identical" to a security sold at a loss within 30 days, such as options with similar expiration dates or strike prices.

The house is a new construction in a Class C neighborhood.The tenants pay late rate ~50% of time, they damaged part of the garage, they have people not of the lease living there, and they leave trash in the yard.Part of me wants to keep these tenants because:-They do pay eventually-I don't want vacancy-The turnover costs could/will be high-How much more damage could they do?