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Updated over 9 years ago,

User Stats

6
Posts
2
Votes
Ray Bailey
  • Castle Rock, CO
2
Votes |
6
Posts

70% Rule for Rental Properties?

Ray Bailey
  • Castle Rock, CO
Posted

Quick question from a Rookie Investor in Denver... When buying a house to be used as a rental, what are the guidelines regarding how much to spend on the property? Obviously, we want to purchase as cheap as possible, but is there something similar to the "Fix and Flip 70% Rule" for rentals? For example, an investor should pay 70 percent of the ARV of a property minus the repairs needed. Does that same rule apply to investment properties?

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