What % of NOI do you use for estimating expenses?

[Austin Negron]

Goodmorning BP. 

I'd like to hear your general rule of thumb for estimating expenses on a MF properties after it's stabilized in the Boston area. Of course everyone has their own formula for what they're looking for but I've heard anywhere from 32-50%.

Example if monthly rent is $5000 monthly expenses are $1,600 (for 32%) - only taking PITI into account

It seems like seasoned investors have found a comfort zone assuming between 35-38% of NOI.

What do you think?