How do you know if an investment property will be profitable? Rule Number One is STILL Location, Location, Location. After that, you can apply these rules:<\/p>\n
The One-Percent Rule<\/strong><\/p>\n The one-percent rule is simply a rule of thumb that investors use to help them narrow down their options quickly and efficiently. A 100K property should rent for at least $1,000 per month. A 100K property needing 25K in repair would need to rent out for at least $1250.00 each month and so on.<\/p>\n The next test for profitability is The Cap Rate<\/strong>. To find the cap rate on your property:<\/p>\n The cap rate assumes you’ve bought the property in cash which allows you to easily compare one property’s\u00a0ROI to another. It is up to you to determine an acceptable cap rate, but generally it should be as high as possible.<\/p>\n For more ideas and advice on Real Estate Investing, please visit my podcast: How do you know if an investment property will be profitable? Rule Number One is STILL Location, Location, Location. After that, you can apply these rules: The One-Percent Rule The one-percent rule is simply a rule of thumb that investors use to help them narrow down their options quickly and efficiently. All the one-percent rule says is that a property should rent for a minimum of\u00a0one percent of its total… Read More<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[],"tags":[],"class_list":{"0":"post-225441","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"entry"},"_links":{"self":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/posts\/225441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/comments?post=225441"}],"version-history":[{"count":0,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/posts\/225441\/revisions"}],"wp:attachment":[{"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/media?parent=225441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/categories?post=225441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosperlcpa.com\/blog\/wp-json\/wp\/v2\/tags?post=225441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nAll the one-percent rule says is that a property should rent for a minimum of\u00a0one percent of its total upfront cost<\/strong>.<\/p>\n\n
\nhttps:\/\/podcasts.apple.com\/us\/podcast\/ep-026-real-estate-tax-geekout-session-w-bernard-reisz\/id1604630028?i=1000613135242<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"