Updated about 9 years ago on . Most recent reply
1% and 2% Rule
Throughout my reading and education on deal analysis' for rental properties, including listening to @Brandon Turner on webinars, I learned to use the 1% or 2% rule just to sort out deals that may be worth the time looking more into. I know not to rely on this rule (or any rule to be exact), but I am confused on the difference of the two. Which one is best to use over the other?
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My mom just told me that the 1% and 2% rule were really key back in the day of 15-20% interest rates. She said not to go by that so much today. In my west coast area, I'm happy to find a .75% deal. It's a nice rule of thumb for a quick, initial evaluation, but there is more than that to calculate the exact numbers.