Colorado green horn in quest for knowledge and networking

[Max Allendorf]

Hey everyone my name is Max I'm 27 years old and live in Littleton Colorado. I have a strong passion to get into real estate investing and am currently enrolled to receive my real estate license. I'm at the networking part of my dream and am currently looking to reach out and meet new people that could possibly teach me the ropes or share with me some of their knowledge. I have experience in construction and handy man work and would be more than happy to be an extra free hand or shadow around someone for the day in exchange for some of my services. Or worst case scenario let me take you out for coffee and allow me to pick your brain a little. Any inquiries would be more than appreciated. Thank you Bigger Pockets  community so much!

[Jared Bouzek]

@Max Allendorf Welcome to Bigger Pockets.

The 1% rule is a "rule-of-thumb" that says your gross monthly rents should be at least 1% of the purchase price. So if you're purchasing a $300,000 house, gross monthly rents should be $3,000 to make it a worthwhile investment.

You will see a lot of variation in this "rule-of-thumb" across Bigger Pockets mainly because it's not a very good rule, and it means entirely different things depending on which market you're in, but people still try to apply the rule across the board to all markets. Some markets in the Midwest people view the 1% rule as a terrible investment and they will only invest in 2% properties. You will be hard pressed to find a legitimate 1% property in Denver without the capability to locate off-market properties with a highly motivated seller and you're likely to do some rehab. It sounds like you have some construction experience, so you have somewhat of a competitive advantage to make sense of those properties.

Long story short, regardless of what rule your aiming at, those rules are simply a guideline. Learn how to do the analysis on properties to determine what makes a good investment. If you do come across a 1% deal in Denver, you will want to know what the risk factors are going into it that make it a 1% property because that simply isn't our market right now for properties that are in decent shape.

If you're interested in flipping, go buy J. Scott's book on flipping. That will be a good starting point for you.