Video - rental property investing: use the 10pc rule
There are a lot of properties on the market and not enough time to look at them all. You need a filter.
The 10 per cent rule says that a property is worth further investigation and a more detailed analysis if the gross annual rent is at least 10 per cent of the purchase price of your rental property.
This filter is a useful way to quickly eliminate rental properties that will not provide positive cash flow.
Watch the full video advice on TheMoveChannel.tv:
http://www.themovechannel.tv/2011/12/rental-property-investing-use-the-10-rule/