The 2% rule for new investor
I am new to investing and found a property that currently has tenants. It is way off on the 2% rule, between .8 and a whole percent, but when I run the numbers through the BP calculator I am getting roughly 25%+ on cash on cash return. Being that I am new, am I just running the predicted numbers wrong, or what might be the issue?
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Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
What you are seeing i why you shouldn't use % as a result in your analysis. They lie and mislead you to bad deals or no deals at all. What are the numbers with $ in front. They are the only one's that matters. Leave 2% for the way you analyze milk