50% rule is alive and kicking for me

[Ryan Pyle]

I just finished my 2013 numbers and am once again amazed at the validity of the 50% rule. Here are my numbers for the past several years. The number of units is the average units held throughout the year. To be clear, my expense ratio includes capex but does not include a management fee.in 2012 and 2013 I have been actively adding units which has increased my capex and repair numbers as deferred maintenance items from the new properties are addressed. The numbers do not include any initial major rehab items that are done as part of the initial purchase.

2013: 97 units, 51.3%, bought a 19 unit, an 8 unit and a 24 unit

2012: 63 units, 48.34%, bought three 8 units

2011: 54 units, 44.73%, bought a 5 unit

2010: 41 units, 40.68%

2009: 37 units, 50.02%

2008: 38 units, 40.14%

2007: 37 units, 47.63%

I expect the numbers to improve a bit over time as the new properties are stabilized. Given that I don't include a management fee, the numbers should be in the low 40%'s. I may do a "same store sales" analysis and see what the numbers look like when I only include already stabilized properties.