50% rule on duplex?

[Daniel O'Grady]

I'm new to REI and thinking of buying a 2 unit duplex. I was wondering, should I use the 50% rule when analyzing a duplex as well as a SFR, or should the 50% rule be modified for a duplex?

[Jerry W.]

The 50% rule is just a good rule of thumb to tell you if you need to move on or look closer at the deal. One difference with duplexes is to check the utilities. In SFR the utilities are separate, in some duplexes they are not and that can really skew the numbers in a bad way sometimes. If the are not split add the utilities to your monthly cost.