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Investopedia explains 'One Percent Rule'

Purchasing a piece of property for investment requires a thorough analysis of future rents compared to the cost of owning that property. Property owners want to maintain a cash flow greater than costs. For example, an investor is looking to purchase a home valued at $200,000, with the goal of renting the home out for income. After placing 20% down, the investor has a mortgage of $160,000. The one percent rule says that the home would have to be rented out for no less than $1,600 per month ($160,000 * .01).

Read more: http://www.investopedia.com/terms/o/one-percent-rule.asp#ixzz2E1my77fu

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• See, that means we think too much -wooddiy- ♂ (187 bytes) () 12/03/2012 postreply 14:02:37