General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 9 years ago on . Most recent reply
2 percent test
hi, I am new to the BP community, and I have started the beginners course. I have a question about the 2 percent test. Is he implying that for a property that cost 200,000 you are supposed to charge 4,000 for rent? That doesn't seem right. Again, I'm new. Can someone enlighten me about this? Thank you!
Most Popular Reply
Originally posted by @Victoria Bravo:
hi, I am new to the BP community, and I have started the beginners course. I have a question about the 2 percent test. Is he implying that for a property that cost 200,000 you are supposed to charge 4,000 for rent? That doesn't seem right. Again, I'm new. Can someone enlighten me about this? Thank you!
No you have it backwards. That means if a property can rent for $2,000 per month, you should pay no more than $100,000 for it. You can't control market rent. You have more control over what you can buy a property for than what you can rent it for.