I always hear about the 50% expenses rule here and how that doesn't apply to us profoundly.

I already have an LLC set up and would like to start building credit, so in the future I can avoid rules such as the 4 property rule by Fannie Mae.

Tell the agents your going to do you diligence on your offer up front and you will get your offer submited.ever hear of the 80/20 rule......80% of the people do 20% of the work and 20% do 80% of the work.......lots of people are lazy and we must make them do their jobs by what ever means (legal) we have to.

**************My answer:REI has to do with risk analysis and exit strategy implementation.Rule #1 - Conserve personal cash.If you have to break rule #1, get a partner.To buy in this market, you can sub2, land contract, seller carry - JV, option flip, etc.To sell in this market, you can lease option, land contract, all cash consumer, carry a second and keep or sell in 6 months.To make cash flow, consider being a consultant helping others sell CREATIVELY, and get fees.That said:You bought for $28K, out of pocket is $5600 down, owe bank 32.4KHave you considered your carrying costs?

I currently am looking for that property that can fit the 50% rule that is so loved on this site.

Once an offer is accepted by the seller (homeowner, not the bank) our local MLS rules state the property must be taken from Active status and put into Backup or Pending.

I would never have found a property that could hold up to the 50% expenses or 2% rule in my last area.

I will change and work within whatever rules are placed upon us.

When doing rentals in college areas do you need to use something like a 55% rule?

Also be aware that if you are trying to flip and sell there is a 6month flipping rule for FHA mortgages.