The 1% / 2% rule by purchase price band

[Diogo Alves]

(Didn't find this in any other forum, if it exists please link me to it.)

The 1% or 2% rules are great rules of thumb, but they mean very different things (and can constraint investors to unrealistic expectations) are varying price points.

All else equal (assume a SFR or 2-3plex, not a crazy cheap or crazy expensive market for operating costs), do you have a schedule of what rule applies to what purchase price band? (or is ARV band a better alternative?)

For example: [All numbers illustrative only — would love to hear what you use in the brackets]

Purchase Price Below [$30k] — Use [2.5%] rule

Purchase Price Below [$60k] — Use [2.0%] rule

Purchase Price Below [$120k] — Use [1.5%] rule

Purchase Price Below [$200k] — Use [1.0%] rule

Purchase Price Below [$300k] — Use [0.8%] rule

If so, would love to hear what market / properties types you use that rule for.