2% rule and 50% rule

[Greg P.]

Hello, I know this has been mentioned many times on these forums, but I am still a bit confused, and was wondering if someone could help run numbers on a couple of scenarios.

Scenario #1- House is vacant, potential rent is $1250 and I could buy it for $52k and then it needs 12k to rehab.

Scenario #2- 4 plex , one unit occupied at $500 per month and the rest can be rented out at $500 per month so potential $1500 gross rents. Purchase price is $50k and 30k worth of work.

How would you calculate both formulas to these scenarios.

Thank you very much.