Are they identical?

That is the situation better explained.Sarah Bixby and John Thedford thanks for that 1% tip, never know about it....is that 1% return on rental rule supposed to be net or gross ( meaning after taxes and insurance and other expenses)Now the plot thickens.....las afternoon i received a call from my realtor, that the bank is considering another higher offer , and if i would consider give a higher offer.

Hi Elliot,To really analyze the deal, you'll want to factor in a few things (i.e. repair expenses, vacancy, etc) that you may have overlooked from your numbers above.Try searching for "50% rule" on here, or check out this (rather long) sticky thread to get an idea of things you'll want to consider:http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

The exception to the credit rules is a new grad working in a job in his degree field.

This is a classic case of an HOA that has some vague language in the rules and then has a Board Member who is trying to use the vagueness of the rule to insert her personal aesthetic on the community.

Here's my usual deal:35k purchase 800 a month rent50% rule - 400 for expenses350 for HELOC loan (90 going to interest rest going to principal) - 7 year am :(I'm getting 7% ROR off of the financed amt, but I didn't put any money into it.

:)Better read the flipping forums, wholesale will help, search for "valuation" "appraisal" will give you plenty on valuation of your deal.In the Buy and Hold area, the 2% 50% rules will lead into valuations, cash flow and rental expenses, even though you are doing this, you still need to know to present your property to other investors.

Since you were talking about building new properties, I put the expenses at 45% instead of following the 50% rule precisely.

I found a rental house with great cash flow (even after 50% rule!)

The best way to learn the current rules is to probably call a lender and see what is going on at the present time, however I found a PDF guide produced by a lender (of which I have no affiliation with) that seems to nicely outlay the current FHA rules.I thought it may be helpful for those who are just starting out and looking to learn about FHA financing to have this guide available.Here it is:http://www.pcmwholesale.com/getform.aspx?