50% Rule / 1% - 2% Rule
Disclaimer... New Investor, purchased my first duplex this past Sept. Now to my question:
I understand the 50% rule and the 1% / 2% rule, what amount to you apply the rule? For example if you purchase a property for $125K an you put down 25%. What amount to you use when crunching the numbers? The full purchase price + rehab? Only the Loan amount? or The loan amount + rehab?