The 50% rule is a guideline that can be used to give you an idea of whether you should put in the time and effort to perform a more detailed analysis. 

If you find somebody with a big patch of this, they'll often let you dig some up and take it for free.

Thanks for the information and I now have a better idea of how to evaluate a property's performance.

Unless you are planning to do a property turn around, which I advise against for anyone new, only buy based on today's performance and not some pro forma BS.

As far as the RE agent is concerned, some due diligence into their performance may be called for.

It generally performs better as an investment property when considering CoCR.  

I thought someone might have a list of keywords that performs well for them.Thanks, Rob

Some investors might balk at the percentage but when you factor these are low income areas and the rents are low the PM isn't making much for all the drama.If you were a PM and could manage an asset in an upscale area instead for say 8% of 2,000 rent that is 160 a month.13% of 600 rent is 78.00 a month and you are dealing with double bookkeeping, high frequency of damage and evictions, multiple trips and constant monitoring of the asset to keep it performing etc.So it's easy to see why many PM companies will not even consider these places.

Value of the collateral (LTV, what is their exit strategy should it become non-performing)3.

You need to perform due diligence first and foremost.