Pulling Comparables
It started as 1% rule.
try to get 1% of your purchase price as rents
Some push this rule to 2, 3, 4, even 5% and then call it the rule; the higher the better.
The 50% rule
is to assume 50% of the rents for expenses; doesn't always work out that way, but better conservative than sorry.
The rule of 72 (click to watch video)
is to take the number 72 and divide that by whatever your interest rate is.
note that instead of converting your percentage to a decimal, just truncate the percentage sign and then divide.
That's how many years it will take for your money to double.
for example 24% return
72 / 24 = 3 years
try to get 1% of your purchase price as rents
Some push this rule to 2, 3, 4, even 5% and then call it the rule; the higher the better.
The 50% rule
is to assume 50% of the rents for expenses; doesn't always work out that way, but better conservative than sorry.
The rule of 72 (click to watch video)
is to take the number 72 and divide that by whatever your interest rate is.
note that instead of converting your percentage to a decimal, just truncate the percentage sign and then divide.
That's how many years it will take for your money to double.
for example 24% return
72 / 24 = 3 years
Please complete the seller questionaire:
https://docs.google.com/spreadsheet/viewform?formkey=dE9BTjdqRG8wTXQwbU0taF9KTlQtZVE6MQ_
https://docs.google.com/spreadsheet/viewform?formkey=dE9BTjdqRG8wTXQwbU0taF9KTlQtZVE6MQ_