50% Rule

[Slade Smith]

Hey guys my name is Slade Smith and I live in Monroe, LA. I am a new real estate investor learning the game. I just watched the you tube video with Brandon Turner talking about the 50% rule. My question is does that just apply to multi-family properties or should I use that rule for analyzing single family properties as well?

thanks,

Slade

[Brandon Turner]

Hey @Slade Smith welcome to BP! Glad you found my video! :) As @Chris Pasternak  said - it's just a "guide" more than a rule. But it's helpful to use as a very quick analysis to filter through a lot of properties and decide what to spend more time on. 

As for single vs multi- It's a little less reliable for single family, as there are so many factors that could affect things. Age, who pays what utilities, etc. So, I typically only use the 50% rule for multifamily properties. And I'll bump that 50% up to 60% expenses on larger multifamily that need property managemnet. 

Hope that helps!

p.s. Don't forget a photo!