5% rule
A rule of thumb: multiply the home's value by 5% and divide by 12 to find your monthly "unrecoverable cost" benchmark. If your monthly rent is below this figure, renting is likely cheaper on a cash-flow basis.
A rule of thumb: multiply the home's value by 5% and divide by 12 to find your monthly "unrecoverable cost" benchmark. If your monthly rent is below this figure, renting is likely cheaper on a cash-flow basis.