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Updated almost 2 years ago,
Here’s another rookie question…the 1% rule…
Does the 1% rule get calculated from a home’s pre-rehab price or should it be 1% of the total (purchase price + rehab costs)?
Ex. 1. I buy a house for $60k. Rent would be $800. That works.
Ex. 2. I buy a house for $75k that needs $20k in rehab. Rent would be $800. That doesn’t.