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HomeForumsStarting Out1% rule, 2% rule are BS...
Łukasz Juraszek's profile image
Łukasz Juraszek's profile image
Łukasz Juraszek
  • Member since Aug 4, 2020
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Łukasz Juraszek's profile image
Łukasz Juraszek's profile image
Łukasz Juraszek
  • Member since Aug 4, 2020
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Łukasz Juraszek
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Starting Out

1% rule, 2% rule are BS...

Łukasz Juraszek
Posted Aug 17 2020, 22:03

In the book How To Invest In Real Estate, the author claims that a property that doesn't meet the 1% rule will never be cashflow positive.

Here is a proof against it. Buy a property for 500K cash, rent out for 2.5K, subtract 1.25K on operating cost, and you're left with 1.25k in cashflow.

Is the author wrong or am I misunderstanding something 🤔?

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