50% EXPENSE RULE

[RICARDO RUIZ]

Where does this rule come from ? Is there data supporting it ? I have couple friends with rental and they completely disagree with 50% expense rule..They believe its expenses are much less that 50% of one months rent... :beer:

[Alexis Dedrickson]

I agree with what was said in another post. Do the math, and as long as you have POSITIVE cash flow of $100 a month, you should be happy. (I am talking about residential properties).