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Tasha P.
  • Detroit, MI
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Duplex Financing w/FHA and 2% rule

Tasha P.
  • Detroit, MI
Posted

Hello BP Fam! I'm analyzing duplex deals using the BP Rental Property calculator. I was getting frustrated because my monthly cash flow was extremely low ($50). I then realized that I only plan to put down 3.5% (FHA Loan) vs. 20% that is used in all of BP tutorial videos. Any thoughts on what would be reasonable cash flow when only putting down 3.5% as PMI comes into play? Also, any rule of thumb on using the Cash on Cash ROI when putting low money down?

FYI- I also considered the 2% rule. A few deals are between 1.4% - 1.5%.