Does the 50% rule work for 50 unit multi families?

[Jim Growfer]

USED AS A GUIDE NOT A RULE

50% of gross income = NOI right?

[Ed Matson]

We have a 15 year old 46 unit complex - 2 buildings.  Operating expenses are closer to 40% including professional management.  Using 50% as a guide may give you an inaccurate analysis.  I would try my best to get real actuals to evaluate a property of this size. So much depends on age and condition of the building.  Also, is the income at market rate?