Updated over 4 years ago on . Most recent reply
The power of the 1%/2% Rule In Real Estate
Does/has anyone ever come across houses that fit the 2% rule or at least 1.5%? Is it actually achievable in houses over $100k?
I know that under $100k you can easily get 1-1.5% in a lot of markets but what about over $100k PP and 1.5%+? The ROI on the cash flow alone would be 30%-80%+/year if you could actually get a property at over 1.5%...
Here is some basic math on how the ROI works:
Ex/Deal #1)
-$100k PP, $20k down/invested
-Loan payment and all monthly payments excluding utilities =$500-$600/month
-Gross Rent =$1250-$1750/month (@1.25-1.75%)
-Net Cash Flow =$650-$1250/month
=$7.8k-$15k/year on $20k Investment =40%-75% Yearly ROI in just Cash Flow