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Updated over 4 years ago on . Most recent reply
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Should price-to-rent ratio be low?
Hi folks,
I'm evaluating regions for OOS multi-family buy and hold.
I understand price to rent (P2R) ratio is a useful metric. However, the sources I've found say that a middle-of-the-road P2R -- around 15-20 -- is ideal.
This doesn't make sense to me. Wouldn't you want the lowest P2R you can find?