All Forum Posts by: Zyon Jones

i just got someone a house hack house triplex in jacksonville that will surpass the 1% rule.  i consistently do this on my rentals as well. i rent many contact me.  Jacksonville local expert. 

HI Zyon,

The 1% rule is an ideal metric but not applicable to all states. Some states, you'll be happy to get 0.6-0.7% back like in the West Coast. Sometimes to achieve the 1% bench mark, you can be creative by adding a bedroom/bathroom/kitchen so that you can increase the rent and value of the property. In Jacksonville FL is still achievable where you acquire houses at an affordable price, but the question is will the rents can be justified depending on the location and neighborhood.

@Carlos Valencia @alber

The rental rate still matters, especially if you plan to move out at some point and still retain the property. You will want to make sure it still makes sense as a regular long-term rental. I think every deal should be analyzed on a case-by-case basis though. Run the numbers "by-the-room" and as a long term rental and don't just count on the 1% rule

Start with a duplex.  Unless you have bigger funds for a quad or larger apartment building to  rent rooms or live in 1 and rent the rest.

I am in North Florida also.

@Zyon Jones When I buy a property the first thing I look for is to make sure the neighborhood is one that I would like to live in and the second thing is that the building would be one I would feel comfortable living in either as it is when I buy it or as it would be after I am done renovating it. I am not interested in being a slum lord and I wouldn’t want single female tenants to be afraid or uncomfortable living in my buildings.

@Zyon Jones The #1 goal of House hacking strategy is to REDUCE YOUR LIVING EXPENSES not to make you money.

You should buy in a neighborhood you are comfortable living. If I can not live there, I would not buy there.

Look for an opportunity to rent by the room as well to maximize your cash flow but I will prioritize safety and appreciation over the cash-flow of 1% rule of thumb. 

By the way, the rule has changed with the exception or BRRRR and some other creating acquisition strategies like SubTo, SRRRR and Seller Financing,

The 1% rule has not worked again since 2020 in most markets across the country, If you come across a property that meets that 1% rule I will say you should dig in further because there is always underlying issues you are not aware of or maybe the property is in a terrible neighborhood.  

Goodluck and keep us posted.

I think the goal with a house-hack is to live in a place that you feel comfortable living while also reducing your overall monthly costs for shelter.

Sure, you can make 1% or more using a house-hack but maybe you are in an area that you don't want to live in. I personally would not want to waste potentially a year of life being miserable to make a few hundred dollars.