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Updated over 10 years ago,
50% Rule Expenses: How long / how much?
FYI. I am new here and don't have any experience with Buy and Hold investing.
I have a question regarding the 50% rule. I understand that this is a general rule of thumb when determining a properties feasibility but the 50% that gets carved off ultimately does get exercised during tenant occupation, correct? My question, and I know the answer is subjective, but how long do you accumulate that 50% and what would someone consider the upper threshold to stop putting that portion away and start counting it as profit? I understand an AC or a roof has a life span and they will eventually need to be replaced but lets assume after 15 years of holding the property, nothing broke or wore out.
What are peoples experiences with this?