Grading Common Real Estate Calculations: The 70% Rule. The 50% Rule. T

Spoilers: The 2% Rule is complete and utter trash.

As for the others, they can be useful, but only as rules of thumb. And sorry for the low volume on this one.

The Good - The 70% Rule: (ARV x 0.7) - Rehab = Max Offer

The Mediocre - The 50% Rule: Gross Revenue x 0.5 = Approximate Operating Expenses

The Godawful: The 2% Rule: If the Monthly Rent / Total Cost = 0.02 (or 2%) it is a good investment.

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