All Forum Posts by: Murray Twyman

Quote from @Nick Karni:

@Murray Twyman Which Brandon Turner book are you reading? I know some of the books he wrote, like the BOMRP were written 7+ years ago. 99% of that book is great advice. However you have to consider the timing of when it was written as well. Brandon and Heather likely wrote that book coming off of the post-great recession period in the housing market. During that time housing prices were low, interest rates historically low, and 2% rule was probably possible in a lot of markets.

Today, the market has completely flipped from those days. Home prices are at historical highs and interest rates are the highest they've been in a couple decades. A property that meets the 1% rule today is considered a great deal. Hope this helps.

Yeah it was his book on rental property investments it was written in 2015 I believe. I figured a lot of this advice was time sensitive to an extent. Though some of the other information is timeless. Thanks for the help 

Thank you both for this insight. I was pretty sure this was the case, but my newness made me second guess myself. @Preston DeanI'm in a similar area to you so this helps tremendously.

I am new to real estate investing, and I have come across the 2% rule. I understand it is much like a litmus test for cash flow and is simply back of the envelope math. However, it seems there is rarely anything that comes close to this rule. So I have a few questions.

1. Is the 2% rule valid in today's market?

2. Is the 2% rule a way to quickly eliminate 95% of property investments allowing one to look at only a handful of deals?

3. Is the 2% rule an upper bound for a range of values? For example, a house's rent should fall between 1%-2% with 1% being a strong "no" and a 2% being a strong "yes".

also sorry if this is the wrong place for this question I am new to the forum.

EDIT: these questions came up after reading Brandon Turners book