What is the 2% rule for rentals?

The 2% rule says a rental's monthly rent should be at least 2% of its purchase price. A $150,000 property would need to rent for $3,000 a month. It is the stricter version of the 1% rule.

It is a quick screen, not a profit figure. It leaves out taxes, insurance, financing, vacancy and turnover costs, which decide whether a rental actually pays.

To see what a turn does to your numbers, start from the rent, the days empty and your payback goal. Our guide to budgeting an apartment turnover walks through the math.