Purchase Criteria
70% RuleStates that the purchase price of a property should be less than or equal to 70% of its ARV, minus the rehab costs.
1% Rule (Rental Properties)States that the ratio of monthly gross rent to the purchase price should be 1% or higher.
2% Rule (Rental Properties)States that the ratio of monthly gross rent to the purchase price should be 2% or higher.
50% Rule (Rental Properties)States that operating expenses should be less than or equal to 50% of the operating income.