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Updated about 9 years ago on . Most recent reply

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Ryan Beasley
  • Statesboro, GA
13
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44
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2% cash flow rule

Ryan Beasley
  • Statesboro, GA
Posted
I'm relatively new to learning about Real Estate but I'm harping on this 2% rule that I learned 2-3 months ago. From looking at different examples of people renting out properties, I have yet to see one that receives 2% of the initial investment in rent each month. Not even one. I know that's what BP teaches you but is receiving a rent of 2% each month unrealistic? Because it's starting to seem like it.

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10,417
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Andrew Syrios
  • Residential Real Estate Investor
  • Kansas City, MO
5,055
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10,417
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Andrew Syrios
  • Residential Real Estate Investor
  • Kansas City, MO
ModeratorReplied

The 2% rule is the work of the devil. Rent/Cost ratios are good, but the 2% rule is a mess. I wrote about this in more detail here if you're interested; https://www.biggerpockets.com/renewsblog/2015/05/06/2rule-die-horrible-death/

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