We've never used percentage-based criteria, like the 70% Rule, for purchases.

@Moshe MarcianoI recently helped an investor from Orange County purchase a single family home here in San Diego.

In Berlin, rental arbitrage has been very profitable, with average annual margins of 25-40% after all costs but before taxes, so shifting to a market where arbitrage is barely breaking even is definitely a reality check.Given your experience, would you say the best way to enter the market now is through purchasing properties with financing?

Purchase price: $185,000 Cash invested: $35,000 Sale price: $671,000This was our 3rd home.

@Jerry Velezif a property is owned outright with no mortgages, debts or liens on it, then it can (potentially) be purchased on seller financing. 

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

What if I told you that you could purchase this property at 20-30% of the initial price, would you take that deal? 

When did you purchase these properties?

You want to be careful not to bite off too much on a first purchase so maybe if more four units or less or available that could be a better starting point with less risk and more ability to learn without potential loss.

My team is looking to purchase a new property each month of 2025.