50% Rule (Rental Properties)
States that operating expenses should be less than or equal to 50% of the operating income.
Cindy Bellford avatar
Written by Cindy Bellford
Updated over a week ago

What Is It?

The "50% Rule" is a purchase criteria commonly used by real estate investors when analyzing rental properties.

According to this rule, the operating expenses of a rental property should be less than or equal to 50% of its operating income.

How Is It Calculated?

You can learn more about the 50% Rule on our blog.

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