Investor · Atlanta · Member since 2019 · 569 posts · 96 votes
Hi,
I hear 1% rent to price rule a lot as thumb rule. My quesion how to use 1% rent to price rule question 2025 built home vs 1980 built home.
For example 1980 home i buy it for 200k producing 2000 per month satisfying 1% rent to price rule today
But tomorrow in future i may get HVAC issue may cost 10k, roof issue may cost 10k, may need new floors may cost 10k, may need new plumbing from polybutelene to flex pvc may cost 10k. may need electric upgrade may need 10k painting may need 10k so all these numbers put we from 1% rule to say 0.3% rule soon.
How you evaluate deals for older homes.
More older home you put hight than 1% rule like 2% rule.
But in market like Atlanta i see homes of 1980s selling around 0.5% rule currently in decent areas like if 200k purchase price getting like 1000 monthly rent