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Updated almost 15 years ago,
question on 50% rule, averages, and pulling out the excess/ profits
first, I'm not bringing up an in depth 50% rule debate. Some here belief in 40%, but my question is more for how you handle your money set aside for the maintenance, taxes,and repairs portion.
I'll assume that you would set aside 50% each month in a general fund.
So let's say your averages run below 50,40 or whater %. As your fund grows, at some point do you make a determination that you have enough set aside to cover any foreseeble expenses, and take the excess off of the top as income for yourself or to reinvest in other properties? Is there a hard and fast rule, or is it just best judgement? Or do you just keep that fund growing indefinitely?