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Updated over 4 years ago on . Most recent reply

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Sterling Riley
  • Los Angeles, CA
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1% rule in California?

Sterling Riley
  • Los Angeles, CA
Posted

New to real estate investing. Looking to invest in buy and holds in the Coachella Valley of California where the market is high. Not much I’m finding is within the 1% rule. Are there other metrics that I should look at in a high market?

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Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
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Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
ModeratorReplied
Originally posted by @Sterling Riley:

New to real estate investing. Looking to invest in buy and holds in the Coachella Valley of California where the market is high. Not much I’m finding is within the 1% rule. Are there other metrics that I should look at in a high market?

 Don't think of it as the 1% rule, but rather as a ratio of monthly rents to purchase price. That "rule" looks different in every market. Some places it may be 2% and others it may be 0.8%. 

  • Joe Splitrock
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