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Updated almost 7 years ago,
BP Rental Calculator Quesiont
Hey BP!
Just a quick question regarding the BP Rental Calculator.
In an attempt to better understand metrics used to measure the feasibility of rental properties, I have been trying to reproduce the numbers presented by the Rental Calculator.
My question is in regards to the 2% ratio shown. My initial impression of the 2% rule was that this rule was just that the rent should equal 2% of the purchase price. The descriptions mentions that it is income - expense ratio? How is this calculated and why is it helpful?
Thanks!
Brian