1% or 2% rule - House Hacking

[Kiki Levin]

On a personal House Hack I am finding it difficult to find a 2% rule deal - especially given the fact the property is in London UK.

Is it ok to follow the 1% rule or will I lose money?

[Anthony Wick]

In my first house hack of a duplex, I still needed to pony up $500 a month for remainder of mortgage. Was that a bad deal? Not at all, because I was paying $1,200 to rent a duplex at the time. I immediately was saving $700 per month on monthly expenses. Do the math on if it cash flows (include property manager as well as capex, maintenance, vacancy, utilities, etc) after you move out. 1% or 2% is just quick an dirty math to see if you should do the real math. BTW: the only 2% properties around here are in C or D class areas, where I would not want to live or own. Too much of a headache.