Thanks John. Makes sense, but 1% seems awfully thin. But I guess in areas=
with high values, that might be case. Here in Oklahoma, we are currently =
lucky enough to be cash flowing much better than that. Guess that's why al=
l the rich Californians are starting to show up with bags of cash and buyin=
g every stick house around.
=20
Dutch


John B Corey Jr <john.corey@gmail.com> wrote:

1% of the purchase price is equal to the rent received monthly. Implies=20
an approximate 12% gross yield (rental income divided by purchase=20
price).

In many circles the 1% rule is the rule of thumb to see if a place is=20
worth considering as a rental investment. Below that and the cash flow=20
is too tight. 1% or above and the deal is generally a winner.

John

On 30 Jan, 2005, at 05:55, Dutch wrote:

> What is the "1% rule"?
>
> Mike Edwards wrote:
> I am seeking any 2-4 Plex Property that falls within the 1% rule for
> an investment purchase if anyone has any leads
>
> thanks, mike edwards
>
>
>
>
>
> ---------------------------------
> Yahoo! Groups Links
>
> To visit your group on the web, go to:
> http://groups.yahoo.com/group/IncomeProperties/
>=20=20
> To unsubscribe from this group, send an email to:
> IncomeProperties-unsubscribe@yahoogroups.com
>=20=20
> Your use of Yahoo! Groups is subject to the Yahoo! Terms of=20
> Service.
>
>
>
>=20=20=20=20=20=20=20=20=20=20=20=20
> ---------------------------------
> Do you Yahoo!?
> Yahoo! Search presents - Jib Jab's 'Second Term'
>
> [Non-text portions of this message have been removed]
>
>
>
> Yahoo! Groups Links
>
> =95 To visit your group on the web, go to:
> http://groups.yahoo.com/group/IncomeProperties/
>=20=20
> =95 To unsubscribe from this group, send an email to:
> IncomeProperties-unsubscribe@yahoogroups.com
>=20=20
> =95 Your use of Yahoo! Groups is subject to the Yahoo! Terms of=20
> Service.
>
>=20




Yahoo! Groups Links








=09=09
---------------------------------
Do you Yahoo!?
Yahoo! Search presents - Jib Jab's 'Second Term'

[Non-text portions of this message have been removed]