Is the 50% rule before or after mortgage?

[Patrick Philip]

The 50% rule of commercial real estate. You should keep 50% of your revenue as earnings. Is this before or after the mortgage?

[Jon Holdman]

The 50% of gross scheduled rents that goes to expenses, capital and vacancy does not include debt service.  That's a quick and dirty way to estimate net operating income.  Debt service then has to come out of the net operating income.