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Updated almost 7 years ago,

Kareem Slater's profile image
Kareem Slater's profile image
Kareem Slater
  • from Orange Park, FL
  • Member since Apr 3, 2018
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Kareem Slater's profile image
Kareem Slater's profile image
Kareem Slater
  • from Orange Park, FL
  • Member since Apr 3, 2018
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Kareem Slater
  • Orange Park, FL
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Starting Out

2% Rule for Rental Rates v Purchase Price

Kareem Slater
  • Orange Park, FL
Posted

I'm looking to start investing in real estate.  I have been reviewing the Ultimate Guide.  It mentions the 2% rule.  Basically that my monthly rental amount should be 2% of purchase price.  EX: $100K purchase should yield $2000 monthly rent.  It also mentions this is very hard to obtain.  Anyone out there use this rule or have an average of what their percentage looks like? Or advice on how to apply this rule?

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