In this video, Phillip and I take apart popular real estate calculations (the 70% rule, the 50% rule and the 2% rule) and give you our grades.
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
-How to Positively Resolve Tenant Disputes (Property Management)
-How to Manage Collections and Delinquency
- A Guide to Due Diligence for Buying Houses
- How to Find Banks for Your Investment Properties
- A Crash Course on Building a Buy and Hold Real Estate Business
- Is the Economy on the Edge of a Cliff??? How Should Real Estate Investors Respond?
- An Introduction Into Buying Portfolios
-Why Buy and Hold is So Powerful
- In-House or Outhouse Management
- Moving to California?
- Doing Maintenance Right
- Should You Accept Pets in Your Rentals?
"Every day is a new life to the wise man."
The Righteous Mind
Star Slate Codex
Consulting by RPM