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Updated almost 5 years ago on . Most recent reply

User Stats

115
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264
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Bryan Beal
  • Rental Property Investor
  • Greenville, SC
264
Votes |
115
Posts

1% Rule - Realistic?

Bryan Beal
  • Rental Property Investor
  • Greenville, SC
Posted

I know we're all read about the 1% when it comes to real estate investing.  For those who don't know what it means, it goes like this -

  • A property that costs $100,000 should rent for at least $1,000 per month
  • A property that costs $200,000 should rent for at least $2,000 per month
  • A property that costs $300,000 should rent for at least $3,000 per month

So on and so forth.  

The markets I'm in (and feel like I'm successful in), these numbers are very difficult to attain - specifically when you get about $150,000 purchase price. Granted, I focus in the SFR territory so I'm sure it's more attainable in multi-unit deals but I seem to settle more in the 0.7-0.8% realm. Is this more of a rule of thumb for multi-unit deals? Should this also apply to SFRs? Any input would be greatly appreciated!

Most Popular Reply

User Stats

189
Posts
141
Votes
Bryan Richardson
  • Rental Property Investor
  • Indianapolis, IN
141
Votes |
189
Posts
Bryan Richardson
  • Rental Property Investor
  • Indianapolis, IN
Replied

@Bryan Beal

I'm getting about 1.5 all the way to to 2.25 on my rentals. I'd look in different areas if I was you

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