Rents for: 5k/month(net 2.5k using 50% rule)Rent Appreciation: 0/moProperty value appreciation: 100% every 10 years for the last 50 years.Property 2: Initial cost: 100,000.

Hi Ethan,  some big wheels on this site have a 1% rule... rent should be no less than 1% of purchase   2% lot better...  

The team will start the repairs necessary to prepare the house for occupancy.That said, here are some details of our 2nd deal: Location: Toledo OH Type: Single Family (2/1) Purchase Price: $23,000 Estimated Repair Costs: $4,000 After Repair Value (ARV): $38,000 Market Rent: $700 2% Rule / Rent to Price: 3.04%% Cash on Cash (COC): 18.89% Cash PurchaseThis is a long-term buy and hold.

I have about $50K equity in my current rental, that everyone recognizes should probably be sold.I know the 2% rule (rent should be 1-2% of total cost of home purchase), but I would love to know more about what works for you guys.

Personally I say Don’t waste your time with single family homes and don’t buy a cheap property like that unless you can achieve 1% rule ( preferably 2% )rule rents or your asking for trouble .

@Jake SvirskyLook for 2% rule Rents equal 2% of the sale price

My Current Ideas: 1) buy out of state in 2% rule properties (They tend to be smaller and I will run into the 4 mortgage rule real fast), 2) Focus on in-state buy and hold rentals that only marginally cash flow, but have a better chance of appreciation in the future, 3) forget about low interest rates and just start flipping properties in my local area. 4) Save up another 100k and buy an apartment complex in a year or two.  

Based on the 50% rule:- Rent =$1600/month ...$800 expenses..$800 for principle and interest- Principle and Interest Payments- 20% dwn= $40K, 30 yr fixed, 4% =$764/mo- $800 - $764 = $36So, yes I make $36/month profit.

That 3% rule really doesn't stick.  

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