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Updated almost 7 years ago on .

User Stats

31
Posts
12
Votes
Brian Kittner
  • Investor
  • Hawthorne, NJ
12
Votes |
31
Posts

BP Rental Calculator Quesiont

Brian Kittner
  • Investor
  • Hawthorne, NJ
Posted

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

  • Brian Kittner