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Real Estate Deal Analysis & Advice

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Craig Osterloh
  • Real Estate Investor
  • Sandy, UT
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50% Rule and $100 Cash Flow

Craig Osterloh
  • Real Estate Investor
  • Sandy, UT
Posted Sep 17 2008, 08:02

I guess my question is how accurate do you find the 50% expense rule?

If you gross rents are $2500, a margin of error of 10% on your expenses would result in a $125 difference in cash flow. This might result accepting poor deals or rejecting good ones.

So in the end, the accuracy of the 50% number is critical, isn't it?

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