Cash Flow
The total net amount you will receive from a rental property as income.
Cash flow accounts for all sources of income and all expenses, including loan payments if you are using financing.
1% Rule
According to this rule, the rent to value ratio of a rental property should be 1% or higher.
2% Rule
According to this rule, the rent to value ratio of a rental property should be 2% or higher.
50% Rule
According to this rule, the operating expenses of a rental property should be less than or equal to 50% of its operating income.
65% Rule
A purchase criteria commonly used by real estate investors when analyzing flips and rehab projects.
According to this rule, the purchase price of a property you're flipping should be less than or equal to 65% of its after repair value, minus the rehab costs you expect to have.
70% Rule
A purchase criteria commonly used by real estate investors when analyzing flips and rehab projects.
According to this rule, the purchase price of a property you're flipping should be less than or equal to 70% of its after repair value, minus the rehab costs you expect to have.