The 1% Rule

The 1% Rule

When searching through the plethora of real estate investment options available, it can be difficult to narrow down all of the options. It is said that it takes looking at 1,000 potential properties to find one deal. One of the first ways I begin to eliminate potential property investments is through using the 1% rule. Utilizing this rule only takes a quick moment and will help figure out if a potential property is worth deeper investigation.

The 1% rule simply states, in order to have the possibility of a positive cash flow the monthly rent should be greater than 1% of the total cost of purchase and repairs.

For example, a property that cost $100,000.00 to purchase and renovate should have a minimum monthly rent of $1,000.00. The 1% rule is a guideline to help determine if the property is worth a complete analysis.

Schedule a consultation with us to learn more about how you can utilize the 1% rule to help you find your first or next real estate investment.

Intro To Real Estate

Intro To Real Estate is dedicated in equipping real estate investors of all levels with the tools they need to be successful. Our real estate education courses are able to be customized and are designed for all learning styles regardless of where you are on your real estate education journey. If you are ready to invest in your future, start by investing in your education. Click here to learn how to take the next step towards your future success with real estate investments.

Wishing you great success in all you do!


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