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Hi BP,
Does the 50% rule include costs for property management or do I take that out of my profit after debt service?
Thanks!
Alison
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There have been many threads recently debating the merit of this supposed rule. I think MUCH of the disagreement is about:
1. When the "rule" should be applied
2. What the definition of the "rule" is
Let's try to...
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Does the 50% rule take into account property management?
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I’m reading the posts on this website discussing the 50% rule. We own few Class C Apartments Complexes, anywhere between 36 to 100 units. My management Company manages around 2,500 units. I have to say that based on o...
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Hello, BP! I hope everybody's doing well around here. In thinking through the 50% Rule, and modeling it out in my spreadsheets, I am finding myself very uncomfortable using it. Here is the hurdle that I'm mentally up ...
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Hello BP!So, what is your Cash Flow number you like to see after applying the 50% rule (and subtracting mortgage payments) to motivate you to move forward or lock down a deal?IE: a place renting at $800 with a mortgag...
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Does anyone have any thoughts on applying the 2% rule and 50% rule in the Chicago area? I know that cost of living and rents are higher in Chicago, does this explain why I am having a hard time finding properties that...
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How's it going everyone?
I have been doing some research and I've known about this 50% rule for a little while but never quite understood when applied to property. Every multi family property I use this screening meth...
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I am turning deals down left and right because of this rule. Is anyone in te same boat??
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Hi there. So I have a property that according to the bigger pockets calculators will cash flow $100+ per month but the 50% rule is -901. My question is what do I do with this information. Why is the 50% rule so negati...