Account Closed
50% Rule Question (Taxes & Insurance)
Do I factor the taxes and insurance into the 50% expenses? Half of gross rent minus P&I, or half of gross minus PITI?
Scott Pigman
Obligatory 2% Rule Post: Origins, 50% rule, and interest rates
I believe that it's in the BP charter that every member is required to start a thread about either the 2% rule or the 50% rule at some time. So here's mine.Does anyone know when and where the 2% rule was first stated?...
William R Johnson
Utilities included in the the first 50%, using the 50% rule
I have a question regarding the 50% rule. I am looking at buying a three flat and I want advice about how to run the numbers on this building.
I understand that the 50% rule is a very good conservative way to evalua...
CJ M.
1% rule? 50%, rule? Actual 1st year %'s of 22 doors
I'm a numbers junkie! I know the rules and %'s in this business can be confusing to new investors (heck I'm still new!), so I thought I would post "actual %'s" from my first "full year/2019." Disclaimer: Every deal, e...
Trevor Morgan
50% Rule vs 2% Rule? What do you prefer and why?
What do you use or prefer and why?I am just learning about them both and Do not know which one I should use or if not both?
Nicholas Bailey
50% Rule/ 2% Rule in expensive areas -> is my reasoning correct?
I'm looking at properties in Chicago and these rules of thumb are basically impossible. I've been listening to the podcasts and reading about the deals, and the numbers are always for these cheap areas, whereas I'm l...
Jacob M.
Does 50% rule work in Texas / Houston?
Hi Everyone. I'm looking at a 4-plex in Houston area. When I run the numbers I seem to get expenses (including vacancy) that is usually 55-60% of gross rents. I think this is partly due to property taxes that are...
Charles S.
Using the 50% rule as a prerequisite
Hi guys
I'm new to real estate investing and I was considering applying the 50% rule to my deal analysis prior to asking my real estate agents for actuals.
I'm assuming this will help build credibility with them and...
Raymond Hill
50% rule for small multi family properties
Hello, Quick question, what is the 50% operating expense rule when it comes to small multifamily properties . I would like to know what categories go into the operating expenses
Heather C.
Why the 50% rule is so important....
I know a lot of people come on here seeking advice about rental deals they have and many of them don't hold up to the 50% rule. I will admit I guilty of justifying the deal in my head even when it didn't make true se...