Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

User Stats

40
Posts
10
Votes
Luke Hoffman
  • Jasper, IN
10
Votes |
40
Posts

Property meets 1% rule but still doesn't make sense

Luke Hoffman
  • Jasper, IN
Posted

I am a new real estate investor in the midwest. I went to put an offer in on my first property (150K) and it makes the 1% (rent= 1500) rule on the money. However, when I used the rental property calculator on this site, I had a negative cash flow of 300 dollars. Yes, I included 1 month of rent missed due to vacancy, 10% for repairs, 10% for capital expenses, 10% for property management (at this time I will manage it but in the future). If you were in my shoes would you do the deal? Personally since its my first property I think its extremely risky! Let me know your thoughts!

Most Popular Reply

User Stats

17,530
Posts
30,312
Votes
Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,312
Votes |
17,530
Posts
Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

Life isnt the end result of a calculator. I have or have had properties where the rent ratio is 0.5% where Ive made a ton of money, and Ive had 2% properties where Ive lost a ton of money.

business profile image
District Invest Group
5.0 stars
44 Reviews

Loading replies...