When using the 50% rule, does that include vacancy and capital expenditures?

Currently appealing a zoning ruling that did not go in my favor because they could not determine the current use nor did they have to.

My first thought was to use my VA entitlement, until I ran into occupancy rules.

So for a very hypothetical and generic example:Purchase Price: $100K ($20K Down) / Closing Costs + Misc: $5K / Rehab: $10K = Total Cash of $33KIf the property rents at the 1% rule, or $1,000 month and your able to cash flow $200 month, you'd be splitting profits 60/40 let's say with your FIL.

It has all of the instructions you need.You may only do this if:They are not currently in a term lease (ie, they are month-to-month, not under a lease that has yet to expire)You give 60 days noticeYou pay them 1 months rentYou actually intend to occupy the unitYou do NOT rent it out again for at least 12 months, even if your situation changes and you move out again.You can find the form here:http://www.sjto.gov.on.ca/documents/ltb/Notices%20...I also highly recommend you read the actual rules about it here:https://www.ontario.ca/laws/statute/06r17#BK65In fact, read that whole document if you're ever going to run a rental property.

What I am trying to determine here is a "rule" of my own to use when evaluating potential leads and if this is feasible. 

Second the reinvestment rules will catch ya.  

I’ve been told to ignore the 1% rule, but I’m sticking with it because it makes zero sense  to me to buy something that a) won’t cash flow well and b) is 30 years old and requires conservative repair and capex estimates.

This situation may related to the poor regulation or rules.

I have found many older setups like this don't meet the current rules of one acre per septic system.