I have one rule that is first and foremost for all properties that I am considering for purchase.

I would also check with an account to see if there are any rules covering a property purchased for business that you & a business partner both live in.  

Using the estimated 50% rule, I will profit $250 a month.

Hey BP,I haven't got out to network and find out for myself but, does anyone know a good percentage to go by for the 70% rule in Rochester, Ny or even more general Monroe County area?

The IRS changes their rules a lot.     

Selling  closing costs.I use as rule of thumb  10% of gross when I do a quick look at properties but to break it down6900    6% commish1000    tax s for 6 months property taxs as we know in texas are sky high.750      builders risk policy500     utilities  got to have those to work on the house1200    sellers closing costs  ( not sure if you included buyers closing cost in your pp)500      misc10,800     10% of gross would be 11,500 so pretty close there.89,270      PP100,120   Sale price of 115,000   equals   profit of  14,800.00  which equals a 40% APR for time held...

The only thing I can contribute (since I have been trying to go through all the podcasts...) is that in a few of the podcasts when the question came up the consensus seemed to be that the 50% rule was more like the 60-70% rule for larger apartment complexes.

For my own projects we have several rules that we follow. 1) hardwood flooring can be purchased in truckload sales for about $3.00 per SF.

will it escheat by rule?

I have been going back and forth and hesitating on when putting up my first post but as written in The Ultimate Beginners Guide "I never worry about action, but only inaction" is a rule that I want to learn and live by.