| by Kenneth Chase | 1 comment

Know Your “Rent To Value” Ratio


If you’re out looking for income
properties, consider the rent to value ratio of the property. Hi, I’m Keith
Weinhold with another “Get Rich Education” money minute. The rent to value ratio is
just a topical quick-hit number for you to know if a deal is worth investigating
any further, and if you can get close to 1% on the rent to value ratio
you’re probably doing pretty well. 1% would mean you get $1K worth of rent income on a $100K purchase price property –
that’s that rent to value or rent to price ratio, whatever you prefer. And, if
you get 0.8 or 0.9 of 1%, you’re probably doing pretty
well, it’s probably going to create cash flow for you with a small down payment.
0.7 – I’ve never seen that work, but the rent to value ratio doesn’t tell
you everything that you need to know about the property, that just lets you
know if it’s worth investigating a bit more closely. Property taxes in the
mortgage interest rate that you pay are the next two big indicators of whether
it’s going to be a good deal for you or not, but go ahead and look at the rent to
value ratio. That doesn’t tell you everything, but that’s just enough to let
you know if you should investigate the deal further. 71% of Americans aren’t
saving enough for retirement. It’s going to get worse as people live longer and
you need to start thinking differently, but you can’t lose your time. Real estate
is the investment vehicle that’s made more ordinary people wealthy than
anything else. Keith Weinhold of “Get Rich Education” is
hosts of one of America’s top investing shows, disrupting Wall Street. He is an
international best-selling author, a writer for Rich Dad Advisors, and has
been an active income property investor since 2002. He has created thousands of
passive monthly income for countless followers. Now he has a free book – the
seven principles for creating wealth in your life. Get your copy now at getricheducation.com/book That’s getricheducation.com/book
Because investing in what produces income for you now and later, Keith Weinhold
is your guy. Sign up now at getricheducation.com/book

1 Comment

Art Amezcua

Oct 10, 2019, 6:08 pm Reply

What is the formula to find the rest to value ratio?

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