2 Percent rule doesnt seem to work in RI
The 2 Percent rule states that 100K homes should net around 2K per month, and the average house around here would be more like 250 for a 2 unit. There is no way I'm getting 5K for rents on a house that is 250K. Im more likely to get 800 to 1000 per month. Now at 1K a month rent that means I need to find a duplex or 2 plex at $50,000 and that seems fetched an impossible. Can someone help me better understand what I am missing.
Most Popular Reply
A financial mathematical fantasy in an idea situation in a typical town. The replacement cost here is about $150/sf for 1600 sf R2 (800sf x2) is $240K, land is extra.
Focus on cash flow, cap rate or return. Most bet on future appreciation.
Sam Shueh