2% rule or 50% rule filter/screens

[Shawn D.]

I actively look at properties and NEVER seem to come across a property that complies with these "rules". What other considerations should I take in account so I don't miss out on property because it doesn't "match". Thank you.

[Kevin Siedlecki]

@Shawn D.. Yeah, that's because both of those rules are just lazy guidelines. If I went by them in my market, I would have ended up in D neighborhoods with a non-paying tenants who destroy the property. That doesn't make for a good investment, no matter what it says on paper. As a fellow New Englander, you are probably in the same boat.

I wrote a blog post about how to do an initial analysis a while back. Not surprisingly, there is more research and input, but it is much more valuable in determining if there is money to be made in a deal. Once you get the hang of it, you can run properties through the analysis almost as quickly as the rules. Take a look and see if it helps: https://www.biggerpockets.com/blogs/6815/45137-my-...