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Updated over 4 years ago,
1% rule, 2% rule are BS...
In the book How To Invest In Real Estate, the author claims that a property that doesn't meet the 1% rule will never be cashflow positive.
Here is a proof against it. Buy a property for 500K cash, rent out for 2.5K, subtract 1.25K on operating cost, and you're left with 1.25k in cashflow.
Is the author wrong or am I misunderstanding something 🤔?