The One Percent Rule of Real Estate: Easy Math to Evaluate Rental Properties

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The one percent rule is here to help you do the easy math on rental properties.

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What is the 1% Rule for Real Estate Investing?

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Corollary: What is the Gross Rent Multiplier?

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The 50% Rule for Rental Property Expenses

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Adding the Mortgage to the Equation

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What percent should I make on a rental property?

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Once you know how to run the numbers – evaluate repairs, expenses, property taxes, rental rates, etc. you have the power to put together a deal that works for you.

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The One Percent Rule of Real Estate: Easy Math to Evaluate Rental Properties

The One Percent Rule of Real Estate: Easy Math to Evaluate Rental Properties

The one percent rule is here to help you do the easy math on rental properties.

The one percent rule is here to help you do the easy math on rental properties.

What is the 1% Rule for Real Estate Investing?

In order to generate positive cash flow, the monthly rent of a property should be at least 1% of the all-in purchase price.

Corollary: What is the Gross Rent Multiplier?

This is basically just the inverse of the 1% rule. Investors just like to throw out lots of terms to be confusing sometimes…

The 50% Rule for Rental Property Expenses

The 50% rule states that on average, the expenses for a rental property will be about 50% of the rent.

Adding the Mortgage to the Equation

On most single family rental properties, you will need a 20-30% down payment.

What percent should I make on a rental property?

What percent should I make on a rental property?

What percent should I make on a rental property?

Once you know how to run the numbers – evaluate repairs, expenses, property taxes, rental rates, etc. you have the power to put together a deal that works for you.

Swipe up to Continue Reading!

Swipe up to Continue Reading!

Swipe up to Continue Reading!

Swipe up to Continue Reading!

Visit WealthyNickel.com to learn how to save money and invest!

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