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All Forum Posts by: Jerry Limon

Jerry Limon has started 2 posts and replied 2 times.

Hello All,

I was hoping to see if I could obtain some clarity on the 50% (60%) rule. I know that the 50% rule states that 50% of your rental income will go towards your expenses and then you would subtract your mortgage to find out what your monthly cash flow would be (if thats not correct, please feel free to correct me).

In addition, when subtracting the “mortgage” does that variable literally only mean the mortgage payment, or should we also include the utilities, interest on the loan and property taxes?

Im asking as I am realizing that of I were to include these additional expenses, it would make a tremendous difference in regards to my monthly cash flow.

Thank you for your input!

Jerry Limon

Greetings,

I just want to start off by saying, I am 21 years old and I am currently residing in Chicago, Illinois, which is also where I consider investing in real estate. I also have zero to no knowledge about real estate.

I do not plan to invest in real estate for another 2 years. Meanwhile, I plan to build my bank account (Goal: ~$60k) and I already began working on my credit score since I was 19 and hope to have it be at least at a score of ~700+ by the time I plan to invest. Aside from those goals, I plan to read and study as much as I can on real estate in the upcoming 2 years. I will be receiving my bachelors degree this upcoming December, so college will be out of the way after that, for now.

I am reaching out to see if there is any additional steps anyone might suggest I take, or things I should do to help prepare myself in 2 years when I plan to actually get physically involved in real estate?