The 50% Rule
I need some experienced investors to way in on this. How accurate is the 50% rule? I do not own any properties and I never have so I truly have no idea how much it costs to be a homeowner (including all of the expenses besides the mortgage). I completely understand that this rule of thumb isn't to be used as the deciding factor on whether or not you should invest in a property but I do want to know what other peoples experience has been and if 50% is a reliable assumption.
Does anyone find it helpful to just put away 50% of the gross rental income you receive into a separate bank account and only touch it for upkeep and expenses? Or is it more of a mental reminder that you shouldn't spend all of your left over cash after paying the mortgage?
Thanks for any advice, opinion, or story!
- Ben