What is the 1% rule in real estate?

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The 1% rule in real estate is a guideline used by investors to quickly assess the potential profitability of rental properties. According to this rule, a property's monthly rent should be at least 1% of its total purchase price. For example, if a property is purchased for $100,000, it should ideally generate at least $1,000 in rent each month. This rule serves as an initial filtering tool to identify properties that might yield a reasonable return on investment before engaging in more detailed analysis 1 2 3.

Investing Insights

Paula explains the 1% rule of thumb in real estate investing, emphasizing the importance of understanding total returns. She delves into exceptions and strategies to achieve high returns without strictly adhering to the rule.

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247 | Zach and Marilyn Talk Real Estate Investing | Paula Pant
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