The 50% Rule includes ALL the real world expenses including, but not limited to: taxes, insurance, management, maintenance, utilities (even if only during vacancies), advertising, entity maintenance, legal expenses, capital expenses (not technically an operating expense), vacancies (not technically an operating expense), evictions, damage done by tenants in excess of the security deposit, lawsuits, etc, etc, etc.As for discussing each item and what to watch out for, that could occupy an entire website.

Things happen to people that set the stage for opportunities for some, those who can identify such matters and provide solutions for owners get the deals.There are many posts here about foreclosures, loans adjusting, economic conditions, housing trends, housing inventories, etc. which, in the end, mean very little to an individual owner as thier personal situation is not a function so much to any of these big picture occurances.

Have you put together a laundry area and staged it?

The problem is how the economy acts when the Fed tries to stop printing and starts reigning in all the excess liquidity.

Suspect areas can have more damage to the unit,turnover,non payers,and excessive management fees (sometimes 12%).It's when you have to deal with problem tenants,evictions,repair issues,etc. that it can take up a bunch of your time.The rate you mentioned for management is normal for my area.Investors only see how much PM's make and PM's see it mainly as a thankless job that pays very little.I can't speak for them but this is the consensus I constantly hear.I looked at the model years and years ago and there is no money in it for a massive headache as a broker/agent.At least not what I classify as a needed return to justify it.Make sure if you use a PM company that they do it full time so they will have systems,processes,and experience in place with contacts as well for repairs.You do not have to use their repair people but it is good to have the network there if you want it.Also build in the PM cost when analyzing a rental and offer accordingly.HUGE MISTAKE is not including PM fee and say you will do it yourself.You try for a few months and then get into a nightmare and no longer want to do it.You hire cheapest PM as you did not figure into your numbers and then the problems start happening.Make sure you include immediate capital repairs to get rent ready when buying and set your reserves as well for vacancy (still pay mortgage if not cash purchase)as well as unexpected items that go out.You have to decide what your main investing goal is.People I know that are already wealthy will spend more to have a property in a nicer area with less cash flow but more appreciation long term and use it more for a tax shelter and refi down the road to buy more properties.Others have it for more cash flow and some appreciation to hold long term and others who want to quit their job and eventually do RE full time are looking to take their small amount and get the biggest bang for the buck regardless of how big a headache it is.

Your repairs can put you in excess of the 50% rule for years.

Have you come across any more excess lots for homes you want to pass along?

With all the money that the government has been printing, that is not a bad assumption.But I am worried that the inflationary consequences of printing money are going to get more than offset by the deflationary effects of shrinking consumer spending and, consequently, excess capacity in the economy.While I admit that the jury is still out on this issue, why should we investors take the significant risk of capital depreciation when there are other opportunities out there that do not have macro-economic risks?

any amount paid in excess of the tax lien and costs goes to the owner who is being foreclsoed on.

Yes a fix and flip.I'm planning on really nice kitchens, bathrooms, floors, awesome landscaping(available cheap to me), and possible staging without going overboard.