The rule simply states that over a long period of time, and number of units, expenses will run 50% of gross rents.It should be used as a baseline for evaluating property.

The problem is that I switched from being an employee to being self-employed last year, and banks don't want to lend to me because of that (since they can't sell the mortgage).

I was in the floor store looking at laminate and the store employee asked me what color the furniture was so that the laminate wouldn't clash.

Combine that with the handman skills and you could pull down 15-20% of the gross rents of the properties you're managing.

Income taxes would be based on gross rents and the total gross rents from the bigger property would be much higher, and only a portion of which would be deductible.

I believe Rich's structure involves a trust that owns an LLC of which he is simply an employee - the manager of the LLC.

But my goal is to get that monthly gross income to $100,000, and then I can retire.Also, since my wife and I work full time, we don't use any of the rental money to live on.

I've been reading on the 50% rule for calculating viability on a potential rental income property: Gross monthly rent-(minus)50% for operating expenses______________________________(equals) NOI(Net Operating Income)-(minus)mortgage payment______________________________(equals)Cash flow (positive or negative)My question is: Does the 50% rule ever become.. the 65% rule?

Gross rent of $1,447!

The 50% rule is a quick and dirty way to estimate NOI from the gross rents.