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Updated over 10 years ago on . Most recent reply

Michael Baradell's profile image
Michael Baradell's profile image
Michael Baradell
  • Property Manager
  • from New Orleans, La
  • Member since Apr 22, 2013

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Michael Baradell's profile image
Michael Baradell's profile image
Michael Baradell
  • Property Manager
  • from New Orleans, La
  • Member since Apr 22, 2013
Michael Baradell
  • Property Manager
  • New Orleans, La
34
Votes |
184
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General Landlording & Rental Properties

50% rule

Michael Baradell
  • Property Manager
  • New Orleans, La
Posted

Hey guys!! Rookie question here. Can someone give me a breakdown of the 50% rule using this example? I have already calculated it myself, I just want to be sure I am doing it correctly.

Purchase price- $75k

Rehab cost- $10- 15k.

Taxes and insurance- $300 month

Minimum potential rent- $1100-$1300

Other info:

New roof, new a/c, ARV $125k - $130k

Any insight on the 50% rule or 2% rule will be appreciated.

  • Michael Baradell
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J Scott's profile image
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J Scott
  • #1 Off Topic Contributor
  • Investor
  • from Sarasota, FL
  • Member since Jan 31, 2008

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J Scott's profile image
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J Scott
  • #1 Off Topic Contributor
  • Investor
  • from Sarasota, FL
  • Member since Jan 31, 2008
J Scott
  • Investor
  • Sarasota, FL
17,209
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

Quick video tutorial of the 50% Rule:

The 50% Rule - Video Tutorial

  • J Scott
  • Podcast Guest on Show #2024
    • 5 Votes
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