{"id":89076,"date":"2017-07-05T05:00:13","date_gmt":"2017-07-05T11:00:13","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=89076"},"modified":"2021-03-16T12:26:30","modified_gmt":"2021-03-16T18:26:30","slug":"achieve-2-percent-rule","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/achieve-2-percent-rule","title":{"rendered":"Investors: You Won&#8217;t Achieve the 2% Rule Unless You Do THIS."},"content":{"rendered":"<p>Many investors use the 1 or 2% rule as a rule of thumb to do a quick evaluation on real estate deals.<\/p>\n<p>In essence, you take the rent per month and divide it into the price of the property, which yields a percentage. The higher, the better, of course.<\/p>\n<p>Everyone seems to strive for the 2% rule, but I have rarely seen many achieve it. People actually don&#8217;t realize how good of a deal the 2% rule is. In the first half of today&#8217;s video, I break down the 2% rule to show what cap rate and cash on cash return you are looking at if you are lucky enough to get a 2% deal.<br \/>\n<em><br \/>\n<strong>Related:<\/strong> <a href=\"\/renewsblog\/2015\/02\/26\/2-rule-50-rule-the-rule-i-use-assess-property\/\" target=\"_blank\">2% Rule? 50% Rule? Here\u2019s the #1 Real Estate \u201cRule\u201d I Use to Assess Property<\/a><\/em><\/p>\n<h2>Do THIS if You Want to Achieve the 2% Rule<\/h2>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/SNz-ZJBIe3Q?ecver=1\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Many wholesalers and turnkey marketers will show their deals to be a 2% performer but be cautious. You should also consider the area, as properties in D-class areas or war zones can show high performance on paper, but come nowhere near projections in reality. The 2% rule is possible, but it takes a certain angle of attack to get there. In the second half of the video, I go over what you need to do to get to the 2% rule or close to it!<\/p>\n<p><em>[Editor&#8217;s Note: We are republishing this article to help out newer readers.]<\/em><\/p>\n<p><em>Please leave a comment below so we can have a conversation! <\/em><\/p>\n<p><strong>I look forward to hearing from you! Have a great and profitable week.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Everyone strives for the 2% rule, but I have rarely seen it achieved. Let&#8217;s break down the 2% rule to show what cap rate &#038; COC return you&#8217;ll be looking for.<\/p>\n","protected":false},"author":1673,"featured_media":89091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4252],"tags":[5317,3278],"class_list":["post-89076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deal-analysis","tag-2-rule","tag-deal-evaluation"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/89076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1673"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=89076"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/89076\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/89091"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=89076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=89076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=89076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}