Hi all.
I know this sounds like a stupid question.. But if I don’t ask I’ll never know..
What is the 11 second rule that you’re all talking about??
I have steve’s book on order btw, but can’t wait to find out..
cheers
Calron the Alcamist
Turning things into gold is fun.
[email protected][
]Hi Calron
You can find the answer in https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2875
[
]Hi Calron
Have you tried the Search button at the top of the page?
Rent per week divided by 2 times 1000 should be the amount you need to pay for an investment property to be +cashflow.
Regards
Thanks Muppet…
I get it… And I think I got it without knowing… So thats why all of our properties are +vely geared:)
Thanks again..
Calron the Alcamist
Turning things into gold is fun.
[email protected][]who made up this 11 sec rule?
it’s not a rule. It’s just a quick way of calculating if your property is going to be cashflow positive at 10.4 percent (I use it as a minimum yield where the rent should cover the mortgage plus costs. You could be CF+ve with a lesser yield with depreciation etc but it’s not a given – yields over 10 percent should be well and truly CF+ve)
You are welcome to calculate it the slow painful way i.e. 50K property, rents for 100 per week, 100 times 52 weeks is 5200,
divided by purchase price of 50K equals 10.4 percent yield…..see the eleven second solution means you could have done that at a glance without the calculator….
however do it with the calculator a few times and it’ll become intuitive!
it’s not a rule. It’s just a quick way of calculating if your property is going to be cashflow positive at 10.4 percent (meaning rent should cover the mortgage plus costs.)
You are welcome to calculate it the slow painful way i.e. 50K property, rents for 100 per week, 100 times 52 weeks is 5200,
divided by purchase price of 50K equals 10.4 percent yield…..see the eleven second solution means you could have done that at a glance without the calculator….
however do it with the calculator a few times and it’ll become intuitive!
it’s not a rule. It’s just a quick way of calculating if your property is going to be cashflow positive at 10.4 percent (meaning rent should cover the mortgage plus costs.)
You are welcome to calculate it the slow painful way i.e. 50K property, rents for 100 per week, 100 times 52 weeks is 5200,
divided by purchase price of 50K equals 10.4 percent yield…..see the eleven second solution means you could have done that at a glance without the calculator….
however do it with the calculator a few times and it’ll become intuitive!
Hey Min
No wonder you have rattled so many posts quickly you keep doubling up on your posts.
Regards
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The topic ‘What is the 11 second rule???? Stupid question tim’ is closed to new replies.
