Seeking Advice: Achieving Better ROI Than the 1% Rule in Real Estate Investments

[Chen Avnery]

Hello all,

I'm seeking advice on achieving a higher ROI in real estate investments beyond the 1% rule and maintaining around 35% of monthly operational expenses (including Cap-ex, maintenance, property tax, and vacancy).

To the best of my knowledge and abilities, the 1% rule with 35% operational expenses seems to be the best I can achieve today. However, considering gross monthly income and operational expenses, I'm looking for strategies or types of properties that can provide a better net ROI.

Here are some key points:

• Location: At least a C neighborhood that is safe for driving around at all hours.
• Cashflow: Investments that can deliver superior cash flow.
• Involvement: I have the time and willingness to handle maintenance and operational activities myself. This includes property management, purchasing houses, etc. For example, if someone suggests Short-Term Rentals (STR) or Mid-Term Rentals (MTR), I can manage them personally since I have the time.

I'm open to various strategies, including single-family homes, multi-family properties, or niche markets, as long as they fit the above criteria.

What types of properties or markets have you found to offer the best cashflow and ROI? Are there any particular strategies or tips you can share to maximize returns while keeping operational expenses manageable?

Your insights and shared experiences would be greatly appreciated, and I'd love to expand our conversation privately.

Thank you

[Michael Dumler]

@Chen Avnery, 

Niche market: metro Atlanta
Investment strategy: rent-by-the-room 

Feel free to message me if you're interested in learning more. If you're unfamiliar with co-living properties, research PadSplit and HomeRoom.