Updated almost 18 years ago on . Most recent reply
50% expenses even on new construction?
Many here use the 50% expense rule when evaluating rentals. Is this true even on new construction? I mean, if you buy a brand new home then I would image you won't have a lot of expenses for the first few years (other than renter damange, etc.).
Should I stay firm and only buy if I can get positive cash flow of $100 per unit using the fomula: rent/2 = PI
Or
Should I be happy with positive cash flow of $100 per unit on a brand new home?