Are you using the 50% rule for expenses?

[Ceasar Rosas]

Good morning BP Family!

Are you using the 50% rule for multi-units, 5 to 15 units, for expenses? I'm noticing that heating and hot water in places like Pennsylvania, New Jersey, New York, Chicago, Ohio, are a large part of those expenses. If you're able to pass those expenses to the tenants(wherever possible of course) aren't you seeing those expenses dramatically decrease? 

[Matt Crusinberry]

@Ceasar Rosas, As a quick analysis, I tend to error on the side of caution and use 55-60% for expenses when valuing a properties proforma. I will use this until I have the actual numbers that will replace it (validated numbers). This is also for commercial properties only (5 units or more) as my goal is to figure out the NOI. Good luck!