What Is It?
The "2% Rule" is a purchase criteria commonly used by real estate investors when analyzing rental properties.
According to this rule, the rent to value ratio of a rental property should be 2% or higher.
How Is It Calculated?
2% Rule (Rental Properties)
States that the ratio of monthly gross rent to the purchase price should be 2% or higher.
Written by Cindy Bellford
Updated over a week ago
Updated over a week ago