Is the 1% rule dead?
Hi All,
I was wondering are you still using the 1% rule when doing quick and dirty new deal analysis? Is anyone out there still able to achieve the 1% rule and in which markets?
Recently I noticed I get to 0.7 or 0.8% at best (i.e. 100k purchase price, $700-800 rent per month).
Excited to learn from you all!
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#3 Personal Finance Contributor
- Rental Property Investor
- Denver, CO
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#3 Personal Finance Contributor
- Rental Property Investor
- Denver, CO
The 1% rule is essentially not going to happen in most markets, unless you are in the midwest or more rural/LCOL areas.
I tend to think about it a little differently. I look for locations that I am comfortable with, and look for the best rental yield I can get in that location. This is how I begin my search. However, the highest yielding property is often not the property that I actually want to buy. It just helps me sort out all the stuff that definitely won't work.
