How Does The 1% Rule Apply in House Hacking?

[Christin Nguyen]

Hey everyone,

So I'm a travel nurse ready to get started into this world of real estate. I have a potential duplex but wanted to understand how the 1% rule would apply if I live in one unit and rent out the other.

Let's say the property is 190k and I have to put 100-150k into a complete renovation. Ideally, the unit that I’d rent would be around 1,700-2,000 a month.

How does the 1% rule work here? Do I also include how much I would charge if I were to rent out the unit I’m living in as well or no? Because I would need to make 1,900 a month to make it a good investment (according to the 1% rule). So is this 1,900 split into both units or should it only be accounted for the one I’m renting? 

I’ve got lots more questions but I figured this would be a good start. Thanks in advance for the help and advice!