The Texas Real Estate Commission tried to put rules in place to require a level of experience before someone could get their license.

Unfortunately, this man has a huge ego (since he was going to get profits and not a specific amount for his work, he insisted he be added to the deed), and in exchange for setting specific "rules" (ie true budget, time line...) my friend made a more lax contract in exchange for a signed quit claim deed.

One of the hottest topics on this forum is the 50% rule.

I would be willing to spend up to $63,750 with 5K down (following the 50 percent rule).

However, this rule fails to take into account how well the home is insulated, how well it's sealed and the local climate.

Please be sure to follow the rules of our forum when post, though.

I have my eye on a bank owned property that is listed on the MLS at 80% of market value but my offer calculated based on the 50% rule would have to be right around 50% of market value.

(Even using the 50% rule!)

Using the expenses (all expenses, including vacancy and capital items) are 50% of rent rule of thumb, your example will need rent of $2762 (I get $1381 for the payment with those terms) to be break even.

A judge may rule that the tenant didn't owe rent for the time they were living in an uninhabitable property.