The 50% rule states that approximately 50% of EGI will typically be consumed by operating expenses.While the 50% rule provides a quick estimate, actual expenses can vary widely depending on the property type, location, age, condition, tenant mix, and market conditions.Here's an example: if a property generates $200,000 in EGI per year, the 50% rule suggests $100,000 would go towards operating expenses like taxes, insurance, utilities, and property management.

"The market will come down".

They have been good as tenants, but I'm charging well below market with the agreement that the units are as-is and non-residential.The building is partially renovated, partially demo'd, has ancient plumbing and electrical.

How would I analyze a deal in a market where the rents are capitulating and is unsure how much or how long it will continue to do so?

Please DM me if you would like to chat on our current projects  in those areas including market conditions, leads and lead generation.   

Feeling intimidated by the real estate market these days?

That means you have to have a reasonable method of valuing the real estate holdings at market value as of 12/31 each year so that you take out the required minimum distribution amount.

You can invest in any market selecting the ones that you believe are seeing the most growth, and do it from anywhere.

They will also handle nonpayment & evictions, marketing of units, applicant screening and much more. 

Hi Justina, I work with a team on the ground in Cleveland that can help with your BRRRR end to end by sourcing an off market property, setting you up with trusted contractors, project managing the rehab and providing property management as well.