45% expenses ??
Hey all.
Writing about the john reed article that was posted on here a bit ago, talking about how most investor's deals they say are good are actually not at all, because according to him, every property over time averages around 45% of the gross income on operating expenses - then you have the principle and interest.
If I go off of his point, I might only have 4 out of my 7 rental properties cash flowing, and I probably wouldn't buy much of anything that came my way.
Just curious, does anyone else out there base their investments off this rule?
And if so, I should probably sell my 3 properties that don't meet this rule?