The 50% Rule for Multifamily Real Estate Investing: What You Need to Know
The 50% rule states that half of a property's gross income will go towards operating expenses, and the other half will be used for mortgage payments, taxes, and other expenses. This means that 50% of the property's gross income is expected to cover all expenses related to owning and managing the property. It's important to note that the 50% rule is a general guideline and may vary depending on location, property type, and market conditions.