Here are 3 quick and easy ways to know if a rental property will cash flow (thread) 👉🏻👉🏻👉🏻
1) The 1% rule: this formula states when buying a property, aim to have monthly rent be at least 1% of the purchase price. Ex: $200,000 property "should" rent for at least $2,000/mo
@theficouple Great rules to follow for quick back of the napkin numbers! I’ve always tried to get 2% for my area but that’s becoming more and more difficult In 6-12m that might be doable again
@theficouple These rules of thumb are so helpful!
@theficouple I used the 1% rule with my first rental. Worked like a charm
@theficouple 1% doesn’t work in my market. 70% doesn’t work if you want to use nice finishes and good design. I’m still trying to figure out what will work here at an entry level.