Can someone define the 1% Rule? What is the math on that?

[Robert Raffalo]

How do you calculate the 1% in the One-Percent Rule?

[Dawn Brenengen]

@Robert Raffalo It's just a rule of thumb to be able to quickly judge whether a property might make sense. The closer to 1%, the better, and higher is even better, but you still want to run numbers on individual properties. Things like property taxes and HOA fees can greatly skew whether a home makes sense. the 1% rule is just a quick way to decide whether a home deserves deeper analysis.