it rents for 350 per so the income is 1400. 700 under the 50% rule.

Taxes are $500 a year and insurance would be cheap for me.Here are the numbers :14% Cap RateTotal Monthly Income: $375.00x50% for Expenses: $187.50Monthly Payment/Interest Payment: $134.90Total Monthly Cashflow using 50% Rule: $52.60One benefit is this house is two blocks from my house, and is in really good condition.What does everyone think about this deal?

-Is there a rule of thumb for pricing single family homes compared to apartment complexes in the same area?

I am a firm believer in setting firm rules and expectations with tenants and PMs.

Two general rules of thumb:1.

It's a good thing though :)Since buy & hold is your aim, check out this video if you haven't already:I use this rule of thumb to evaluate every deal I come across.

I am wondering how to use certain rules (such as 50%) to know if this is a good deal.

I think our MLS rules are within 1 day Sold status has to be entered and for a new Listing must be activated within 2 or 3 days (don't recall exactly) of the contract date.

@Jon Klaus I think the juries still out on what the rules are going to be.

The addendum over rules any conflicts it has with the contract.