Posted by Jya-Ning on October 23, 2003 at 13:42:02:
I saw a lower number (55%). That number excludes vacancy, tax insurance, cost to find next tenant, cost for maintain.
So if you have a 25 unit, each rent 800, you will have 800 * 25 * 12 as your max potential income. Times .65 (your number) it is the most likely income you will received. Then you can compare that with your financial cost to see if it support.
If you are not very handy, you may want to use .55 instead of .65