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Updated over 5 years ago on . Most recent reply

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Patricia Dickinson
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General Landlording & Rental Properties

What is the 2% rule?

Patricia Dickinson
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what is the 2% rule?

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Shain Ismailovski's profile image
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Shain Ismailovski
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Shain Ismailovski
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Shain Ismailovski
  • Real Estate Agent
  • New Jersey
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Shain Ismailovski
  • Real Estate Agent
  • New Jersey
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The 2% rule in real estate is a rule of thumb which suggests that a rental property is a good investment if the monthly rental income is equal to or higher than 2% of the investment property price, You may also hear reference to the 1% rule which is the same thing, but 1% of the price. 

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