Is the 50% rule accurate enough?

[Arturo Borges]

Hey!

Is the 50% rule accurate enough for someone to rely on it when analyzing a multifamily deal? What exactly are the expenses one incurs with a multifamily property?

Thanks!

[Aaron H.]

Accurate enough for what? For a quick and dirty analysis as a filter for whether something is even in the ballpark, sure. For actually buying a property? No way.

You want to use "real" numbers for as many things as possible when analyzing a deal, especially before actually closing on it.