House Hacking and One percent rule

[Michael Dodson]

If you’re house hacking in say a duplex and the mortgage is $1,0000 but the rent collected for one side is $800. Does it still meet the one percent rule because if you moved out and rented your side it’d be $1,600 in rent?

[Corby Goade]

Don't worry about any of these "rules of thumb." They're a fine benchmark, but they stop so many new people from getting going because someone on BP told them that's how you need to invest. There are many markets where 1% deals just don't happen, but there are other ways and methods that can be very lucrative. You need to worry about whether or not the deal meets your immediate needs and long term investment and personal goals. 

I can't tell you how many "investors" I've worked with, and continue to work with, who are scared to pull the trigger on anything because someone on BP (who has probably never invested either) told them how it's supposed to work. They wait for years looking for a 1% deal or a 2% deal or something with specific ROI or whatever. They wait forever and sit at their desk from 9-5 until they're 70 years old.

Please excuse the slightly off topic rant, I just believe so many of these rules create analysis paralysis for people. Investing isn't hard or scary after you do a couple deals, they don't have to be home runs It's the education and experience that matter. Jump in!

Best of luck!