All Forum Posts by: Sarkis Gezalyan

@Matt Crusinberry so basically it’s the sale price , the amount down I put doesn’t matter when calculating 2% rule.

Hey guys, I’m learning how to do an analysis on properties. One thing I’m confused on is the calculation of the 2% rule. Can someone give me an example of how down payments come to play? For example, let’s say a property costs 100k and rent is 2k. This obviously covers the 2% rule. If I were to put a down payment on this property of about 10k, would I add that amount to the 100k then try to see if it covers the 2% or do I subtract the 10k so it’s 90k*2%? Does this make sense?