There is a lot you will need to know about the property to determine if it is a good deal for you or not though to include:- rent history - vacancy rate- current lease terms- expenses (operating expenses, insurance, taxes, etc) - market value of the property- property conditionOnce you know more you can apply the 50% rule to determine what the long term expenses will be.

I'm still new at investing, but when people focus so much on appreciation I can't help but think back to 2008 with the bubble.For me, I'd do a typical analysis w/ the 50% rule and look for a property that cash flows at least $100 a month.

A good rule-of-thumb is the 50% rule: Expenses (NOT including the P&I payment) will take up half the gross rent.Gross Rent: 395 x 4 = 158050% Rule: 1580 / 2 = 790P&I: (You'll have to add this in)Cash Flow: Whatever is left after the P&I payment.

I'm thinking by the 2% 'rule' if I can rent it for $400 a month, it would be a decent deal if I could convert it for under $20K.

Here's an exception to the rule, at least inside.

Read the sticky thread in the landlording forum about the 50% rule.

(I plan on buying units and selling or lease/optioning units).I've heard that you can look to local lower end apartments and subtract 20% but that seems like a rule of thumb at best.

I was wondering if anyone had heard the rule of not spending over half of ones' savings on anything if you have no debt.

I won't completely rule it out at this point but due to a personal issue I now may not be able to use the contractor that I wanted to for this house which would make the deal not work.

Pursuant to rule 2 13.0003(2), Florida Administrative Code.