Out of every 100 listings, how many hit the 1% rule or flow pos?

2 Replies

In the current real estate climate (the last couple of months), how many listings out of 100 would you say are good deals, meet the 1% rule or provide 10%+ cash on cash return? I know this varies from market to market, your strategy, how much you put down, etc but I'm kind of looking for a ballpark figure. Is this way too hypothetical? 😅

Maybe to be more specific, how many buy and hold, single family home listings out of 100 will provide a 10% or more cash on cash return with 20% down on a property in or outside of a large city in the midwest?

Somewhere between 1 - 100%  It all depends on the percentages you use for the different markets analyzed, which in turn generates a general percentage of different size properties in these different markets, which then setup a different percentage for each different size range of properties within those markets.  These will then define the micro-markets that another set of percentages for each different set of square footages within these micro-markets.

Thus, somewhere between 1 - 100%.

My question is this.  If there was a specific answer to the original question, what would it mean in dollars?

@Joe Villeneuve Great question and it sounds like understanding this is crucial to finding the right investment. That said, I'm not totally following all of it but I'm going to digest it a bit more and keep learning. If you have any references to learn/understand this better I'd love a reference to them, thank you again.

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