Rental Property deal and the 2% rule

Rental Property deal and the 2% rule

Investor · Greenville, SC · Member since 2020 · 3 posts · 1 vote

I am looking to purchase a property that has an ARV of 160k. the purchase price would be 100k with 15k in repairs. Making me all in after closing costs and other expenses of about 120k. The property should rent for 1400 conservatively. That puts me in that 1.16% range. Does anyone have any advice on this deal? Its an older house, but will have new roof/HVAC which should limit repairs to some extent. Thanks.

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  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    6y

    I don't know your market but it sounds like a pretty decent deal for a flip or even a BRRRR.

    2% is very difficult to find in most markets unless you're investing in pretty rough neighborhoods.

  • Investor · Greenville, SC · Member since 2020 · 3 posts · 1 vote
    6y

    I was very much considering BRRR. I could flip of course, but really wanting to build a portfolio of cash flowing properties. Thank you!

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Tyler Conforti Congrats! Sounds like a solid deal and you have the skills to make sure the job gets done according to plan. Nice numbers; all the best!

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