Does the 50% rule apply to high end rentals?

[Grant Scott]

Hi BP,

I'm new to real estate and live in a very expensive part of the country and am trying to find a strategy that works here. My question is, does the 50% rule apply to high end rentals or is there more flexibility since repairs shouldn't cost the same proportionately?

Ex.) Property purchased for $700k, rents for $4500.

Taxes- $6800/yr

The 50% rule would assume $2250/month in expenses or $27,000 a year which seems very high.

Would love any thoughts or feedback.

Thanks,

Grant