How To Use The BURL Rule

Are you wondering if luxury real estate is a good investment? It can be, but it depends on your desired lifestyle and financial goals.

What Is The BURL Rule?

The BURL Rule stands for “Buy Utility, Rent Luxury.” Sam Dogen, a personal finance writer and real estate investor, conceptualized it to help people decide between buying and renting.

The rule is rooted in an investing idea that urges people to avoid purchasing a home that costs more than 100 times its monthly rent at the time of sale. Dogen’s BURL rule asserts that investors will get the best value by purchasing utility homes and renting luxury homes. 

How To Finance Multiple Properties Using The BURL Rule

The basics of the BURL rule are easy to apply to a single investment property, but what if you want to own multiple rental homes? You can use the BURL rule to finance numerous properties by layering other common investing strategies. 

How To Finance Multiple Rental Properties

A few options are available if you’re looking to finance multiple rental properties. The conventional financing route is ideal for people buying four properties or less. Conventional mortgages come with low-interest rates for 30-year terms as long as the borrower has ideal credit and can provide a 20 percent down payment. 

Use The BURL Rule To Divide Your Funds & Grow Your Portfolio

Expanding your real estate portfolio is a great way to secure your financial future and build long-term wealth. The BURL rule can help you make the best decisions for the highest ROI if you can supply a large down payment. 

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