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Updated over 5 years ago,
50% rule. Should we use this on small multi family properties?
I’m trying to put together my first buy and hold deal somewhere between a single-family residence and a four Plex most likely. I’m using the 50% rule for every property I come across and none of the numbers seem to be working out after I also figure in the debt. Should I be using the 50% rule in every case or is that just left for larger multi family deals? At first I was just thinking the area I’m in just didn’t have any good deals but I want to make sure I’m being fair when figuring a price that makes sense for both parties.