The problem with most real estate license education is you learn the rules, but you don't learn run your real estate career as a business.

How does HUD enforce the 50% occupancy rule?

@Kevin Seith Tear downs are more costly as mentioned by @John Moore there are usually additional costs for permits and engineering and you can't forget having to comply with all the current zoning rules like setbacks, off street parking, sprinkler systems, fire separation, density, lot coverage, and impervious surfaces.

@Sandy Paris As long as you learn how to apply the general rules and it makes the number easier for you to understand, then it can be a great idea!

Using the 50% rule right now your expenses should be at least $8K to $8.5K based upon what your total rents should be.

Using the 50% rule and a new >$800 PI payment you are ranging from several hundred negative cash flow to maybe $100/month if you happened to score one of these deals in a slightly higher end town.Obviously if you just did $50K of rehab you should cash flow much better than this the first several years as repairs and capital expenses should be low, but in the long run you need to account for them.

I know the rules vary from state to state but I am hoping someone from Michigan (mainly Genesee County) may have some advice.

VA rules that I must occupy one of the apt.'

FHA has different rules than conventional loans and thus you need to know your loan type, the date it was issued, and some other information.

If you want to flip, start by understanding the areas. the #1 rule of real estate is Location Location Location after all.