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Updated about 6 years ago,

User Stats

113
Posts
44
Votes
Victoria S.
  • Overland park, KS
44
Votes |
113
Posts

1% rule vs cash flow

Victoria S.
  • Overland park, KS
Posted

On a couple of properties we are close to the 1% rule but they are good duplexes in great areas ($100-200 off to meet the 1% rule). And once the leases are up we will raise the rents. All our properties meet our goal of 10% cash on cash (accounting for 5% vacancy, 5 % maintenance/cap ex). How strict are you guys on the 1% rule? Also, are my cash on cash criteria too lax? I know we should likely put 10% for maintenance/cap ex.

Right now we are averaging $300-450/door. 

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