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Updated about 12 years ago on . Most recent reply

Nuhan Demirkan's profile image
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Nuhan Demirkan
  • Rental Property Investor
  • from La Plata, MD
  • Member since Nov 21, 2011
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Nuhan Demirkan
  • Rental Property Investor
  • from La Plata, MD
  • Member since Nov 21, 2011
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Nuhan Demirkan
  • Rental Property Investor
  • La Plata, MD
117
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Real Estate Deal Analysis & Advice

Question about 2% rule on latest podcast

Nuhan Demirkan
  • Rental Property Investor
  • La Plata, MD
Posted

In the latest podcast as a rule of thumb it was stated that the monthly rent should be equal to 2% of the purchase price in order to ensure the property will cash flow. I'm not sure this works, especially in my area (Wash DC metro). There is no way I can get $2000/mo rent from a $100K house. Any thoughts?

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Sam W.
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  • from Northeast, Ohio
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Sam W.
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  • from Northeast, Ohio
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  • Northeast, OH
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Sam W.
  • Investor
  • Northeast, OH
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Nuhan Demirkan

Agree with Ryan M. In my area muli-families are the way to cashflow.

I'm getting $2174 on a $112K 4-family.

Similar ratios with duplexs and 3-family properties.

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