Stephen M.
low cap rate, 50% rule = negative cashflow?
Hi BP community, I'm a new potential real estate investor in the Seattle area. I happened upon the BiggerPockets podcast and found it to be very informative and am since hooked. The discussion is fantastic and very ...
Cameron Marmon
Couple of questions on the 50% Rule
Hey everyone, new guy here. Loving the forum and the info. I have a few questions in regards to the 50% Rule. I may be making a simple rule too complex, but curiosity is making me ask haha.
Example:
We identify a p...
Zachary Sales
50% Rule vs. Applying Percentage for Expenses
When analyzing deals, is it better to apply the 50% rule to a deal, or go through and apply a certain percentage of rent to anticipated expenses, being Vacancy, Maintenance, Capital Expenses, and Property Management? ...
Ryan Fox
The 50% rule and down-payment size
Looking to purchase our first single-family home out of state (timeline about 12 months). We want to be conservative so we have been using the 50% rule to practice analyzing various properties. We're finding it very d...
Matthew Mucker
Where does the 50% rule come from?
I know the "50% rule" is bandied about as gospel here in the forums, but haven't seen any actual, hard data that says that operating expenses tend to be ~50% of gross rent income. I'd like to verify this number is, in...
Jose Alejandro Hernandez
Nothing seems to pass the 50% rule
Just starting out here and been reading Brandon Turner’s book on Rental Property Investing. The book gives a rule to use to quickly screen properties known as the 50% rule [(0.5*projected income/rent)- (Mortgage P an...
Eric Siu
Cap Rate and the 50/2 rule?
Hi all, I've been curious as to how the above concepts relate to one another:
I've been reviewing various commercial real estates and they then do provide information related to the "cap rate" and NOI of the ...
Leigh Ann Smith
Does the 50% rule apply in Texas?
Property taxes run about 2.8% in the Houston TX area. So, for a $100,000 house, that's $2800/year or $233/month. Do you just throw out the 50% rule in areas like this?And don't get me started on flood insurance....
Marcello Di Gerlando
50% rule to quickly evaluate operating expense
I ‘m looking to dive into the multifamily market, I’ve been doing my home-work and I’m working with a realtor…I have lots of questions. Here is my first.
If I am using the 50% rule to quickly evaluate operating expens...
Cameron Marmon
Couple of questions on the 50% Rule
Hey everyone, new guy here. Loving the forum and the info. I have a few questions in regards to the 50% Rule. I may be making a simple rule too complex, but curiosity is making me ask haha.
Example:
We identify a p...