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Updated about 4 years ago on . Most recent reply
1% rule in California?
New to real estate investing. Looking to invest in buy and holds in the Coachella Valley of California where the market is high. Not much I’m finding is within the 1% rule. Are there other metrics that I should look at in a high market?
Most Popular Reply
Originally posted by @Sterling Riley:
New to real estate investing. Looking to invest in buy and holds in the Coachella Valley of California where the market is high. Not much I’m finding is within the 1% rule. Are there other metrics that I should look at in a high market?
Don't think of it as the 1% rule, but rather as a ratio of monthly rents to purchase price. That "rule" looks different in every market. Some places it may be 2% and others it may be 0.8%.