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Updated 12 months ago,

User Stats

118
Posts
61
Votes
David C.
  • Lender
  • Los Angeles, CA
61
Votes |
118
Posts

What do you use for Expense Ratio?

David C.
  • Lender
  • Los Angeles, CA
Posted

I’m looking at buying a LTR. When determining the net income, I simply multiply gross rents by an expense ratio to determine the net income. My question is, what do experienced LTR investors use for the expense ratio? I’ve heard 50%, maybe 40%.  The expense ratio is used for an initial screening, actual expenses would be determined before buying.

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