Duplex Rental Question

[Corinne Squires]

New member here with a question. My Husband and I found a duplex that we like for 165K including the minor repairs on it. We have plans to move a family member on the lower and rent the upper. We would be paying cash for it, and the rents would equal 1,750 a month. I'm confused by the 2% rule for cash flow. We wouldn't have a mortgage on the property so it will technically already cash flow. How do you figure if a property is a good deal if you are paying in cash? 

[Kevin S.]

@Corinne Squires if it were me, I would assess the property as if I was financing it 100%. I'd be looking to see if the property still had a positive cashflow after financing and all other costs (capX, repairs/maintenance, vacancy, etc.) If it doesn't positively cashflow when financed 100% then all you are doing by paying cash for it is buying cashflow.