For example, I believe my maintenance/cap ex allocation is accurate but most people would find them to be very conservative (I suspect they have not spent the effort calculating the estimate that I have).Related to expenses, the 50% rule really is not a rule but a guidance. 

He also pulled out a ruler stick to measure how high the roof was and told them anything above 6 feet the workers had to be tied off with harnesses on.

I would read the below article to help you understand per IRS rule RE professional but again speak to your CPA and or attorney for guidance.https://www.thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.htSo you invest $100k, and let's just say for argument sake it is a 6% cash on cash return so you will make $6k in Year 1 and go up from there.

You're not hitting the 1% rule (rent to ARV).

@Jared Smith I'm interested to know your reasoning for this rule (really more of a heuristic, I think). 70% is an important number in a BRRRR (it's the number that allows you to get all your cash out), but why in a flip?

This property certainly meets the 1% rule (rent is 1% or more of the purchase price), so that's a good sign right off the bat.

If you follow any of the teachings here -in BP you can use some qualifiers to analyze the property:1% rule Rent should be 1% at least of the purchase price it?

Therefore, if I buy a home at $50,000 and according to the 1% rule rent should be $500 (yes, I am aware that purchase prices this low can also go by the 0.8% rule, which would be $400), but if I BRRRR this property to market value of $80,000.

Once they break your first "rule" (rent amount), they'll want to break rules right and left (smoker, pets, whatever).

Gross rents without utilities would be around $1000, so it still clears the 2% rule (rent over purchase price).We'll see how the chat with the lender goes on Monday.Mike