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Updated over 4 years ago on . Most recent reply

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Norman Berman
  • Member since Sep 23, 2020
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Norman Berman's profile image
Norman Berman's profile image
Norman Berman
  • Member since Sep 23, 2020
Connect
Norman Berman
4
Votes |
16
Posts
Starting Out

Should price-to-rent ratio be low?

Norman Berman
Posted

Hi folks,

I'm evaluating regions for OOS multi-family buy and hold.

I understand price to rent (P2R) ratio is a useful metric. However, the sources I've found say that a middle-of-the-road P2R -- around 15-20 -- is ideal.

This doesn't make sense to me. Wouldn't you want the lowest P2R you can find?

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