A Breakdown of the 1% Rule in Real Estate

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What is the 1% Rule in Real Estate?

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What is the 1% Rule in Real Estate?

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How to Calculate the 1% Rule?

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Calculating the 1% rule is very easy. All you need to do is multiply the total investment in the property by 0.01 or move the decimal point two places to the left.

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When to Ignore the 1% Rule in Real Estate Investing

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– The property is located in a high-demand or high-growth area where rents are expected to increase significantly in the future.

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Alternatives to the 1% Rule The 2% rule The 50% rule The cap rate The cash-on-cash return

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A Breakdown of the 1% Rule in Real Estate

What is the 1% Rule in Real Estate?

What is the 1% Rule in Real Estate?

The 1% rule is a simple formula that helps investors measure the potential cash flow of a rental property. It states that the monthly rent of a property should be equal to or greater than 1% of the total investment in the property.

How to Calculate the 1% Rule?

Calculating the 1% rule is very easy. All you need to do is multiply the total investment in the property by 0.01 or move the decimal point two places to the left.

When to Ignore the 1% Rule in Real Estate Investing

– The property is located in a high-demand or high-growth area where rents are expected to increase significantly in the future.

Alternatives to the 1% Rule The 2% rule The 50% rule The cap rate The cash-on-cash return

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