How much rent to charge

[Juan Carlos Gutierrez]

hello everybody I just recently heard on the podcast that a good amount of money to charge for rent 2% of the purchase price to be able to cashflow pretty good. Example a 100,000 house rented for 2,000 a month, in my opinion I don't think I could rent a 100k for 2k. Or am I'm looking for a higher end home to be able to do that? Can anybody share a little light on this?

[James Wise]

Originally posted by @Juan Carlos Gutierrez:

hello everybody I just recently heard on the podcast that a good amount of money to charge for rent 2% of the purchase price to be able to cashflow pretty good. Example a 100,000 house rented for 2,000 a month, in my opinion I don't think I could rent a 100k for 2k. Or am I'm looking for a higher end home to be able to do that? Can anybody share a little light on this?

 Your looking at this backwards. The free market does not care if your rent in 2% of your purchase price or 30% of your purchase price. You can charge what the free market determines you can charge.

To determine what the going rate is you want to check comps. You can do this by

1. Calling FOR RENT signs in your neighborhood
2. Checking Zillow, Trulia, Craigslist & HotPads
3. Calling a local Property Manager and see what things are going for