Experienced MF investtor take on 50% rule

[Vincent C Riccio]

Listening to the BP 50% rule (50% of Rent Roll goes to expenses, remaining 50% is your income minus mortgage) I realize the point being emphasized around cash flow and evaluating properties. I am wondering from experienced investors, is 50% what you figure or do you have a different gauge? My take is some metro markets (NY, NJ, CT) are so expensive and have MF properties selling over 10X the annual rent roll that it will require large down payments. 

[Marc C.]

Originally posted by @Jill F.:

The national apartment association does an annual survey of operating income and expenses gathering data 

 Here's the 2016 version: http://units.naahq.org/august-2016/naa-operating-i...

And for 2015: http://m.naahq.org/sites/default/files/naa-documen...

These are, of course, averages for larger properties nationwide, so just use them as a guide. (But it's useful for showing sellers that they have too high expenses.)