Rental Formula Birmingham AL

[Danie Tuck]

Hello BP!

I have a question for my Birmingham AL Investors and wholesalers. When buying or wholesaling rental property what formula do you use to come up with purchase price? I know that the flipping formula is different from rentals. Just want your opinion!

Thanks 

[Account Closed]

@Jared Garfield

These numbers are helpful; thank you for the post!

I'm trying to get started in real estate investing by purchasing a house in Birmingham. My plan, initially, is to buy a house and live in it until we build up enough to purchase another home, then we would rent the previous home.

My desire is to build wealth slowly and conservatively over time, so I would say that equity is important to me. What advice would you have for someone like me? Would you recommend using these numbers you listed above, or something else?

Thanks!