25% expenses on Multi Family
Do any multi families actually operate with only 25% expenses in relation to gross rents. I made an offer on a multifamily property and used 50% rule as a guideline. The realtor's response was.....
" Vacancy rate, is less than 10%. Most of the time there is a waiting list and vacancies are filled as soon as the unit is cleaned and or painted if needed. As far as expenses he said 25% was a huge amount ti figure so not sure where we go from here, we seem to be do far apart."
Should I stand firm on 50% ? I thought I should. However they act like this is some special situation where even 25% expenses is high. Anyone ran into anything like this? I figured they are are stating this to justify asking price that is way too high!!