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Updated over 6 years ago,
CapEx on expensive SFRs
Hello BP,
I understand the 50% rule guideline and it makes more than perfect sense. But does it really scale with more expensive SFRs? For example if I buy a 500k home with a monthly mortgage payment of 3k and I can rent for at least 4200 (maybe more but this is a safe number)? That leaves 600 per month for CapEx, vacancies and management. Obviously lower priced homes and rents have less margins. Is their a sliding scale for the 59% rule for more expensive properties?