Nothing in Market meets 1% rule
My husband is in the military and we are getting restationed to Okaloosa County, Fl, (Destin, Crestview, Niceville, Fort Walton Beach) area. We want to purchase our first investment property, preferably a multifamily, and house hack to build wealth. We are also open to purchasing a single family as a investment property. However, there doesn't seem to be any properties in the entire county that meet the 1% rule. We have educated ourselves, saved up cash reserves, found a real estate agent, and gotten pre-qualified for a no money down VA loan. BUT CANNOT FIND A GOOD PROPERTY TO INVEST IN. I've always been taught to only go for a property that meets the 1% rule, if not 2%. But the market is crazy. What should we do?
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
OK. Now, forget the stupid 1% rule. It tells you nothing. Go back and look at all those properties you analyzed, and just figure out what the cash flow will be. That's the way you measure a rental property.
What can you buy with a percentage?
What can you buy with dollars?
Which is a better number to use as a goal when analyzing a rental property?