REI in Spain and the 70/50/2 % rules

[Damien Pautot]

Living in Spain since few years and expecting to buy my 2 first rental properties next year in this area, I was expecting to know if some BP Investors have already invested in this area, and specially if they were able to follow the 70/50/2 % rules from Brandon Turner?

I have studied the market (and maybe being stuck in the analysis new bee complex...;)) and I am hesitating in between cities, as I dont respect the rules, and as I don’t want to make a good investment, but a really good/great investment.

Furthermore, if you have a prefered market in Spain, please shoot in between Madrid, Barcelona, Valencia, Sevilla, Bilbao or other smaller area?

Thanks a lot to the BP Community!!!! Y hasta luego desde Barcelona!!!

[Javier De la Rosa]

Hi guys, 

I feel sometimes these rules are good as guidelines, but we all invest in different markets and conditions may differ and be more challenging (perhaps) here in Spain than in the US. 

I usually pay more attention to cashflow and, as long as the net ROI is within my acceptable range, I'll go for it. I mean net ROI because I don't care about gross. The net one is the figure I like to have in mind, as it is the more realistic one and the only one that will let me know if there's room for a hiccup or not.

I also have "gut feeling" rules I often use like "whould I live here"? Even if I'm buying in areas where initially I'd never go to live in, I think "if I'm in trouble and I have to sell everything else, would I live here? even for a short period?" If the answer is no, I think I may have a hard time finding decent tenants...