Hello everyone.
I am a new investor and have not done my first deal yet. I'm in the middle of reading the recommended books and going through "literally" all of the bigger pocket podcasts.
I understand the 1% guideline, 50% rule (guideline) etc, but what about in higher price markets and new/ newer construction?
If i were to purchase a new or newer home (only a few years old) to rent out, which you would expect to have very little capex involved, what numbers would you guys recommend using as a guideline.
I understand that many would say just look an hour in any direction for a lower priced market, but if you WERE wanting to stay in the higher price/ newer area, any thoughts?
Where i'm looking (south jordan, herriman, sandy, utah) i'm not finding any new/ new homes that come even close to the 1% guideline or 50% rule. (Could just be a possible indicator that prices are too high?) I'd "like" to start getting into some longterm holds while interest rates are still low, and before the fed raises more this year, but i also don't want to overpay.
Thanks in advance.
Andrew