Using the 2% Rule in Omaha, Nebraska

[Shawn French]

We hear a lot about “The 2% Rule” (or, as The Book on Rental Property Investing calls it, “The 2% Test”).  For our benefit, I would like to create a local forum discussion (THIS forum discussion) that documents our investing experiences here in Omaha.  My intent is to have an ever-evolving catalog of properties (at the neighborhood level) showing the relevance of this rule of thumb in our city.

This is a controversial topic, and it seems very difficult to pass the 2% Test in Omaha, but hearing each of your real stories will make this locally meaningful.

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If you need a refresher on “The 2% Rule” it is simply this:

MONTHLY RENTAL INCOME / PURCHASE PRICE = X%

Here are a few links:

Youtube video by @Scott Trench (click here)

BP article by @Ali Boone (click here)

BP article by @Mark Ferguson (click here)

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To start contributing toward this database, simply respond to this post with the following:

(1) NEIGHBORHOOD

(2) PROPERTY TYPE (single family, multi-family, etc.)

(3) MONTHLY RENT

(4) PURCHASE PRICE

(5) RENT/PURCHASE PRICE RATIO (%)

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For example, your response might look like this:

(1) Midtown

(2) Duplex

(3) $1,800 (unit one: $800; unit two: $1,000)

(4) $150,000

(5) 1.2%

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Hope this becomes very informative for the Omaha investing community as we start to develop our local rules of thumb.

-Shawn