1% Rule
Hi All,
I'm very excited to get more involved in the BiggerPockets community! I currently own a condo and rent out a room but am looking to move into a duplex.
As I'm doing my research I find it very hard to find properties that would meet the one percent rule. I live in Portland, Oregon, and multi-family properties that don't require a ton of work are at least 400k.
I judge an investment based on the expected return of the initial investment. For example, putting 80k into a property (we'll say the house is purchased at $375k and the rest of the money is used for fees and updates) that can net $1,000 a month seems like an excellent return even if you aren't meeting the one percent rule and getting $3,750/mo in rent.
The $1,000 a month gives a 15% return annually on the 80k which, in my mind, is tough to beat. I have a significant nest egg already set aside for any issues that come up with the property.
Is my thinking flawed? Do most investors here truly meet the one percent rule?
Thanks so much!