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Updated almost 9 years ago on . Most recent reply

2% cash flow rule
I'm relatively new to learning about Real Estate but I'm harping on this 2% rule that I learned 2-3 months ago.
From looking at different examples of people renting out properties, I have yet to see one that receives 2% of the initial investment in rent each month. Not even one.
I know that's what BP teaches you but is receiving a rent of 2% each month unrealistic? Because it's starting to seem like it.
Most Popular Reply

Andrew Syrios
Pro Member
- Residential Real Estate Investor
- Kansas City, MO
- 5,011
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The 2% rule is the work of the devil. Rent/Cost ratios are good, but the 2% rule is a mess. I wrote about this in more detail here if you're interested; https://www.biggerpockets.com/renewsblog/2015/05/06/2rule-die-horrible-death/