The 1% rule is a guideline often used by real estate investors to quickly evaluate potential investment properties. It suggests that the monthly rental income of a property should be at least 1% of the purchase price to be considered a good investment. For example, if a property costs $200,000, it should generate at least $2,000 in monthly rental income (1% of $200,000) to meet the rule of thumb.
New to topics? Read the docs here!