Updated about 7 years ago on . Most recent reply
2% rule with down payment
Hey guys,
I’m learning how to do an analysis on properties. One thing I’m confused on is the calculation of the 2% rule. Can someone give me an example of how down payments come to play? For example, let’s say a property costs 100k and rent is 2k. This obviously covers the 2% rule. If I were to put a down payment on this property of about 10k, would I add that amount to the 100k then try to see if it covers the 2% or do I subtract the 10k so it’s 90k*2%? Does this make sense?