Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago,
50 percent rule
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.