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Updated almost 5 years ago on . Most recent reply

1% Rule - Realistic?
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

@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