Updated almost 7 years ago on . Most recent reply
1% Rule - 1% of what
Hey everyone, I'm starting to analyze houses on the market and I'm curious if the 1% rule applies to the purchase price or if we should throw add the estimated cost of repairs? I'm seeing some homes where rents, say 2000/month (after repair) would be about 1% of the purchase price 200k. But they seem to require tens of thousands in repairs, say 25k. So when I add the two, 2k monthly isn't enough to meet the 1% rule on 225k spent to acquire the home.
Am I looking at this the right way?