Investment rule of thumb Calculations

[Bobby Gill]

Let’s make a list of rule of thumb calculation post. Also, Correct me if I’m wrong.

70% rule: ARVx70%-Repair cost= Purchase Price

1% rule: 1% of Purchase = monthly rent est.

50% rule: 50% of rent goes toward expenses. Not including debt services/mortgage payment

Please add to post with other rules of thumb for investing...

[Joe Villeneuve]

Originally posted by @Bobby Gill:

@Joe Villeneuve

Great example. Thanks for sharing your numbers. Here to learn a bunch!

What do you do to sift through so many potential properties for sale?

 I analyze markets, meaning I analyze all the properties in that market proactively...before they are for sale, based on the sold comps and the rental comps.  Then, when a property is listed for sale, I already know what to look for as a maximum asking price.  If the property is less than that price, I make an offer, if it's over it, I walk down the street.