Are Real Estate Calculations Any Good? | Grading the 70% Rule, 50% Rule and 2% Rule

Real estate investors have made a couple of simple rules for evaluating properties. Of those, the most popular are the 70%, 50% and 2% rules:

- 70% Rule: (After Repair Value x 0.7) - Repairs = Maximum Allowable Offer
- 50% Rule: Gross Operating Income x 0.5 = Gross Operating Expenses (or NOI)
- 2% Rule: Monthly Rent / 0.02 = Maximum Allowable Offer

But are the calculations helpful? Are these rules any good? Well, I'm glad I asked on your behalf. In this video, Phillip and I will tell you the unvarnished (and slightly melodramatic) truth.

Click here to see the whole video!

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Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

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How to Find, Evaluate and Acquire Real Estate Deals | Part 2: Andrew Syrios Presentation at MAREIThe Mindset Real Estate Investors Must Master to Succeed | Part 1: Bill Syrios Presentation at MAREI
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