Multi-Family Expenses as part of Gross Operating Income

[Mario J Perez]

Hello,

I would like to get an idea of what percentage of the gross income expenses are in a large multi-family property?

I realize this is going to vary, but I would just like to get a ballpark figure.

Thing is, when I'm analyzing a property, the expenses I get from the broker seem low, thus a low cap rate.

Thanks,

MJP

[Spencer Gray]

The rule of thumb is 50% and in reality it's usually a range between 45-55% +-.