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Forum / General Property Management / What purchase amount is good 4 a LL

Hi prosperous people. I am new and excited having read several forums and LL investing books & about to make 1st investment. Math is not my best quality however, I do understand cash flow and net operating cost etc but I do not know what purchase price to invest in a property according to rents & expenses. I would like a formula where I could input the numbers and come up with the maximum purchase amount in relation to rents and expenses to make profit. Sorry I know I should be able to gather this information from what I read but I need it spelled out in simple language Thanks, good karma

good k, GA on Wednesday, April 2, 2008

RE: What purchase amount is good 4 a LL

Some landlords use the 1% rule. Which means that if you pay $100,000 for a property you should receive $1,000 in rent. I think that is a good basic formula to go by. I use the formula on this site under resources. With this formula you can compare several properties price/rent and find out which one provides the best return.

Posted by Kevin K, FL on Tuesday, April 22, 2008

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