Updated over 7 years ago on . Most recent reply
2% Rule for Rental Rates v Purchase Price
I'm looking to start investing in real estate. I have been reviewing the Ultimate Guide. It mentions the 2% rule. Basically that my monthly rental amount should be 2% of purchase price. EX: $100K purchase should yield $2000 monthly rent. It also mentions this is very hard to obtain. Anyone out there use this rule or have an average of what their percentage looks like? Or advice on how to apply this rule?
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I’ve done a 2 percent rental but probably won’t do it again. I would rather be closer to 1 percent in a better area. Less costs over time.