My first deal outside Detoit

[Joel Rosenthal]

Hey guys, I am getting ahead of myself a tad but have an inspection tomorrow on a house outside of Metro Detroit. I’ve picked a location between my work and my house for convenience and it’s by a hospital in the area.

The price agreed is 100k, there will be some work to do but overall minor stuff and am budgeting around 3k.

I was talking to someone about this and they told me they are stern on the 2% rule, which I’m way off based on 100k purchase, 20% down and rent conservative at 850.

Cap rate is showing right at 7% and net free cash flow just under $200. What am I missing or looking past in terms of figures?