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Updated over 2 years ago on . Most recent reply

Dominic Bailey's profile image
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Dominic Bailey
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General Landlording & Rental Properties

I'm really confused about the 2% rule.

Dominic Bailey
Posted

I have a property that I am looking to rent out very soon. I purchased the property when it was $208k. I did some work on it and now it's valued at 237k. I plan on renting it out for about $1,900 a month which is the going range for the area. However according to the 2% rule, I'm not making any positive cash flow. Is my math right or am I doing something wrong?

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    Joe Villeneuve's profile image
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    Joe Villeneuve
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    • from Plymouth, MI
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    Joe Villeneuve's profile image
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    Joe Villeneuve
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    Joe Villeneuve
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    Joe Villeneuve
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    The 1% and 2% rules should be left where they belong...on milk cartons.

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