50% rule and vacancy

[Roger R.]

In applying the 50 % rule do you generally do it after vacancy or is vacancy part of the 50% allocated towards expenses?

[Aaron K.]

I don't like the 50% rule at all as it is not detailed enough, if applying that then do so including vacancy otherwise it'll take too much time.  That rule is just to give you an idea of whether to do further analysis, it should not be relied upon for purchase decisions.