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Updated almost 5 years ago,

User Stats

41
Posts
5
Votes
Adrian Zamora
  • Real Estate Broker
  • Wilmington
5
Votes |
41
Posts

50 percent rule

Adrian Zamora
  • Real Estate Broker
  • Wilmington
Posted

Hello BP

I have a question about the 50 Percent rule. I was wondering how to justify more expenses just because there is more rent. For example lets say I have a property that rents for $500 and according to rule $250 will go to cost, if I decide to raise the rent to $600 now the cost is $300. If everything stays the same why should I factor in more cost for a simple rent increase; shouldn't that just make your profits go up? Thanks in advance.

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