Updated over 3 years ago on . Most recent reply
1% test or 2% test? How do you interpret the results?
Hello!
I am a total newb on this site and in this investment space and Im looking for my first deal! I have a few properties that interest me and I am running both the 1% test and 2% tests on them. 5 properties in a row have resulted in the test for 2% FAIL and the test for 1% PASS on the same properties. I guess I am unclear on how to determine weather these are potentially good deals. I know there are alot of other variables involved but if someone could shed some light on how to properly use, analyze, and apply these test, I would really appreciate it! What margins on these rules make YOU comfortable in moving forward? THANK YOU!
Matthew C.