!% rule/test and utilities

[Balaji A.]

Can someone please clarify this?

If I buy 2 properties for $100,000 each

Both bring in a rent of $1000 /month.

For Property A, Tenant pays utilities and for Property B, Owner pays utilities.

Although both A and B  meet the 1% rule, the cash flow is very different.  (A>B)

DOES the 1% rule include utilities ?