Cash Flow

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

1% Rule

According to this rule, the rent to value ratio of a rental property should be 1% or higher.

2% Rule

2% Rule

According to this rule, the rent to value ratio of a rental property should be 2% or higher.

50% Rule

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

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

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.