Posted by wpage on August 15, 2010 at 12:23:26:
Hi Chris I agree you need money in this business but your theory that the rent must be 2% of purchase price is way off base. Your theory is that rental on a $200,000. purchase should be $4000.00 per month. I have been in this business for 36 years and I can tell you that is not going to happen. Even $1600. on an $80,000. purchase (as in this example) isn’t going to happen. By the way, I have not walked away from any property in 36 years. However, I have made a few months mortgage payments from my pocket.