Do you apply the 2% rule to single family home purchases?

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Do you apply the 2% rule to single family home purchases?

Aaron Cohen
Allentown, PA · Member since 2017 · 1 post · 0 votes

I've been evaluating a lot of single family homes to purchase and rent out.  When I run the numbers with the 2% rule they are exponentially off base with the market rents in the community and town.  New to the 2% rule, but thought maybe it is more directly related to multi-unit communities.  Any insight would be greatly appreciated.

Thanks,

Aaron

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    8y
    Originally posted by @Aaron Cohen:

    I've been evaluating a lot of single family homes to purchase and rent out.  When I run the numbers with the 2% rule they are exponentially off base with the market rents in the community and town.  New to the 2% rule, but thought maybe it is more directly related to multi-unit communities.  Any insight would be greatly appreciated.

    Thanks,

    Aaron

     The 2% rule is just a quick calculation to determine if the property is worth running numbers on - your calculations based on local market knowledge is what you should be using

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