50 percent rule
Hello BP
I have a question about the 50 Percent rule. I was wondering how to justify more expenses just because there is more rent. For example lets say I have a property that rents for $500 and according to rule $250 will go to cost, if I decide to raise the rent to $600 now the cost is $300. If everything stays the same why should I factor in more cost for a simple rent increase; shouldn't that just make your profits go up? Thanks in advance.