I like to use a mix of the 2024 HUD Fair Market Rents, MLS previously rented units w/ pictures to see what type of tenant expectation aligns with the rent price, AND Rentometer.com to get a bunch of data on a new market.

(min 32) He states the formula for the 2% rule as: the ratio between income and purchase price: Monthly rental income divided by the purchase price = xIs the formula just wrong in the book?

Research comparable properties in the area to gauge pricing, rental rates, vacancy rates, and demand.Property Insurance: Obtain quotes for property insurance to understand the potential costs and coverage options.Survey: Consider getting a property survey to confirm boundaries, easements, and encroachments.Due Diligence Contingencies: Include due diligence contingencies in your purchase agreement to allow time for inspections, assessments, and resolution of any issues uncovered during the process.Risk Assessment: Identify and assess potential risks associated with the property, such as market volatility, tenant turnover, maintenance costs, or regulatory changes.Exit Strategy: Develop a contingency plan or exit strategy in case the investment doesn't meet your expectations or unforeseen circumstances arise.By thoroughly conducting due diligence, you can minimize risks and make an informed decision about purchasing the property.

So have strong comps to show that it will actually sell at your expected price. 

In todays world there are much better options for the application process but there are LOTS of background/credit check companies on the internet that provide different services and have different pricing. 

Basically we have our best tenant rates (quite a bit below market), our good tenant rates (a little below market), our ok and worse tenant rate (above market price). - if you want to terminate lease and not say it is because he is an a$$ (which is the primary reason), you can say we have decided to rehab your unit to optimize rents. 

Your gain and tax is determined by the net sales price ($240K ish) minus the adjust cost basis ( your purchase price plus capital improvements and minus depreciation).A bigger concern though would be that if you are wanting to do a 1031 exchange you probably should not refinance right before a sale. 

I have 12-doors and I'm closing on a new duplex next month.Ultimately, the market you choose will depend on your goals.Looking for cash flow and lower entry price points?

Thanks all,Preston Henman Define your buy box, which area , what price , what size , how to finance based on your risk capabilities.

Essentially, this single fact is where any premium is derived for the price of the property.