45% expenses ??

[Seth Mosley]

Hey all. Writing about the john reed article that was posted on here a bit ago, talking about how most investor's deals they say are good are actually not at all, because according to him, every property over time averages around 45% of the gross income on operating expenses - then you have the principle and interest. If I go off of his point, I might only have 4 out of my 7 rental properties cash flowing, and I probably wouldn't buy much of anything that came my way. Just curious, does anyone else out there base their investments off this rule? And if so, I should probably sell my 3 properties that don't meet this rule?