Question 1

How can you tell if a property is a good investment?

Accepted Answer

One metric to consider is the 1 percent rule. It suggests that a property's monthly rent should be no less than 1 percent of the upfront cost, which includes any initial renovations and the purchase price. It is one well-known method to help you determine if a property is a smart investment.

Question 2

What is the 2 percent rule in real estate?

Accepted Answer

According to the "2% rule," an investment property's monthly rent should be 2% of the purchase price or more. Here is an example of the 2% rule for a $1,000,000 purchase price: $1,000,000 x 0.02 = $20,000.

Question 3

What factors should be considered before investing in a turnkey property?

Accepted Answer

Before making a purchase, it is important to thoroughly research and comprehend where we are in the investment cycle; the present and predicted cost of financing, trending employment environment, etc. It's crucial to understand the impact of such factors on rental rates, recent selling prices, etc.

What is Turnkey Property Investing? Why We need To Know It

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