50/50 Rule: Does this typcially include CAP EX?

[Jeff Petsche]

Hello BP Family

In order to get a better understanding of analyzing buy-hold deals (SFR and Mult-Family), I am going into the MLS and looking up CLOSED properties and running the numbers that were provided by the listing agent(s). NOW, I understand that there is A LOT more due diligence that would need to be considered to get a true picture of the deal, but I am noticing that the average expenses outlined in the MLS is between 42-44% of GSI.

So my question: If you use the 50/50 rule, would this cover CAP EX?

I know some investors who add $250/door for CAP EX and calculate 40% for other expenses, which includes 10% for vacancy, taxes, insurance, repairs/maintenance, property management (NOT Debt Services).

IF they don't separate out CAP EX per door, they use the 50% expense rule.

Thoughts?