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Updated about 5 years ago,
Numbers not working?
Hey BP, curious if anyone has thoughts on the BP calculator with regards to the Rental Property analysis vs the 50% rule? I've been using the rental property analysis calculator and when I plug the expense numbers in and calculate it out I'm almost always cashflow negative, whereas if I use the 50% rule I'm usually cashflow positive.
So my question to you all is, am I plugging in numbers that just won't work or is the 50% rule a good rule of thumb to go by and I should be ok on a deal if the 50% rule works out? Thanks in advance, the expense numbers I usually plug in is $75 for water, $70 for insurance, 10% vacancy, 10% repairs/maintenance, 10% CapEx, 8% Property Management, then of course Mortgage payment and Taxes
Thanks for taking the time to read and respond if you do. Sorry if too vague, happy to answer any and all questions, didn't want to make it too long