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Updated almost 6 years ago,
Buy and hold 1% rule question
So here's the situation. My area generally falls short of the 1% price to rent ratio I desire. It's more along the lines of a 0.70% to 0.75% ratio. I'm a buy and hold guy looking to BRRRR my way to financial freedom. I have one rental property refinanced and am currently looking for number two! Since I intend purchase a BRRRR house along the lines of the 70% rule, and the local area tends to rent at about 0.70% price to rent. Is it wise to consider that as meeting the 1% rule that I aspire to acquire? The numbers seem to suggest that it would cash flow a couple hundreds bucks a month. I just wonder if i'm missing something. Thanks for your thoughts.