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Updated over 13 years ago on . Most recent reply

Marcello Di Gerlando's profile image
Marcello Di Gerlando's profile image
Marcello Di Gerlando
  • Investor
  • from Colorado Springs, Colorado
  • Member since Sep 14, 2011
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322
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Marcello Di Gerlando's profile image
Marcello Di Gerlando's profile image
Marcello Di Gerlando
  • Investor
  • from Colorado Springs, Colorado
  • Member since Sep 14, 2011
Connect
Marcello Di Gerlando
  • Investor
  • Colorado Springs, CO
238
Votes |
322
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General Landlording & Rental Properties

50% rule to quickly evaluate operating expense

Marcello Di Gerlando
  • Investor
  • Colorado Springs, CO
Posted

I ‘m looking to dive into the multifamily market, I’ve been doing my home-work and I’m working with a realtor…I have lots of questions. Here is my first.
If I am using the 50% rule to quickly evaluate operating expense for a prospective multifamily property. Should I also add vacancy and credit loss to estimate Cash Flow before Taxes? Or does the 50% rule include vacancy and credit loss?

  • Marcello Di Gerlando
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