My first deal-- Please help

[Joe C.]

Hello to all the great people on BP. I'm having trouble analyzing these properties in my area. I'm very nervous cause I don't want to mess this up, however I'm also exited and want to get started in REI.Here is an example of one of them. Conventional lending--Purchase price 50K--Rents for 750/m--2008 taxes were 4000 and I'm trying to implement the 50% rule. The taxes are whats messing me up, isn't the 4K going to eat up half the NOI? Any help or advice will be greatly appreciated. -Joe-

[Raymond B.]

Karen,
I suggest that you take the time to read this:
http://www.biggerpockets.com/forums/52/topics/17612-where-does-the-5-rule-come-from-

Ray in Ct.