I was wondering if it is possible to give a general breakdown for the 50% expenses in the 50% rule? I think this can be extremely helpful for the newbies among us to predict the future cashflow potential for a property.
My guestimate:
8% Vacancy (1 month/year)
10% Maintenance
10% Management
10% Taxes (???, I’m not in the USA, pls feel free to update)
1% Insurance
1% Advertising/marketing
10% Other (eviction, lawsuit, unforeseen, etc)
Hope to see a lot of updates from the experienced investors :biggrin
Greetz, Raymond