1% Percent Rule for Buying Rentals | The One Percent Rule Explained
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The video discusses the importance of calculating cash flow when purchasing a rental property to ensure that it will be a profitable investment. The one percent rule is introduced as a simple way to determine if a property will likely cash flow. This rule involves dividing the monthly rent of the property by the total cost of purchasing and rehabilitating the property. Exceptions to the rule may occur in high tax states. The one percent rule is further explained as a percentage-based metric that can work in most markets, but exceptions may occur in high tax states or certain super high-end areas. The rule may vary depending on the type of property and the end goals of the investor. A-class properties are high-end properties that are mostly owned by homeowners, while B-class properties are recommended to aim for in good neighborhoods that can meet the one percent rule and appreciate well. The video also promotes a free mentorship day giveaway for commenting on their videos, where the winner will have access to the entire team to discuss real estate topics such as landlordship, rehabbing, wholesaling, and apartment complex investing. The value of the giveaway is estimated to be around $10,000, and the chances of winning are increased by simply leaving a comment on their videos. The video ends with a call to subscribe to their channel and hit the notification bell to get notified when they go live every Wednesday.
The video discusses the importance of calculating cash flow when purchasing a rental property to ens