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Updated 11 months ago on . Most recent reply

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Jamaar Brown
  • Virginia Beach, VA
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70 percent rule on flips

Jamaar Brown
  • Virginia Beach, VA
Posted

You have to excuses my ignorance I am doing research. I understand the 70% rule If you plan on flipping property. But what if I plan on renting it out. What percentage should be my rule of thumb?

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J Scott
  • Investor
  • Sarasota, FL
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

There are no percentage rules. You have to decide on your criteria and then run a pro forma analysis on each property to determine if it meets your metrics.

Once you do that 50 or 100 times, you'll start to see patterns and will know intuitively if a deal might work for you.

BP has a great book on investing in rental properties by Brandon Turner. Highly recommend it.

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