Updated about 18 years ago on . Most recent reply
Starting w/ "The Math"
Thanks for the warm welcome. I was literally practicing the art of the basic 2% rule using gross rents and sales prices. I've yet to find a deal meeting the parameter by following "asking price," but it's good "math" practice.
Anyway, when one finds a property meeting the 2% rule - and there's a sliver of profit leftover after subtracting my mortgage payment from the N.O.I., is that the only profit I should consider when determining a property's cashflow? It seems obviously so, but I wanna make sure because it's tempting to cheat "the math" by saying, "There's no way gross monthly expenses will total 50% - maybe 40% or 35%"
It's the proverbial devil on one shoulder and angel on the other. I know who to listen to.....but I'm recognizing this isn't a "jump off the diving board head-first" investment career.
By the way, have most you 2% adherents found you meet the 2% rule through skill negotiating almost exclusively?
Okay, I've asked two questions.
KMc