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Updated over 3 years ago on . Most recent reply
When the 2% and 50% rules should be used or ignored?
I have analyzed several homes using the BP rental calculator. Multiple times, I have had positive cash flow ($300/mo) and acceptable CoC ROI (5-7%).However, these homes have all failed the 2% (and 1%) and 50% rules. What am I missing?
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Jay Hinrichs
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Jay Hinrichs
#1 All Forums Contributor
Professional Services
#1 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
those rules are totally out dated.. they were fine coming out of the GFC but values have risen faster than rent..
not that you cant get those today you can if your willing to risk asset class and or you hunt for these on your own direct to seller.
- Jay Hinrichs
- Podcast Guest on Show #222
JLH Capital Partners