5 Rule of successful investing Flashcards
1
Q
Rule: 1 percent
A
Divide the monthly rent buy the value of the house x buy 100?
1800/ 120000 x 100= 1.5%
2
Q
Rule 2: 20% expense rule
A
How much money would I need to cover Long term Expenses?
3
Q
How much money should I start with in Savings
A
$10000 on property #1
$5000 on each property Act
4
Q
Rule 3:The 70% ARV rule
A
Use the 70% ARV
Use the 70% ARV flip rule to Approximately
the most you would ever pay for property
Home value + 70% ARV rule Expenses max offer
250000 X 70 - 25k =150000
5
Q
Rule 4
How do I know whether this is a good deal.
A
Depends on
Equity
Cash Flow
Appreciation
Principal Reduction
Down Payment
6
Q
Rule 5 OPM
A
Partner With someone that has money
