The BetterLife Podcast Want to Get into Real Estate Investing? You HAVE TO Know these 3 Terms | Ep. 104
Dec 13, 2024
Dive into the essential rules of real estate investing! Discover the game-changing 1% rule to gauge rental income effectively. Learn about efficient cash flow analysis with the 50% and 70% rules for smarter property evaluations. Explore quick estimation techniques to streamline your property search and make informed decisions without the hassle. Plus, find out how virtual assistants can boost your productivity in managing investments!
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Rules of Thumb for New Real Estate Investors
- Learn these 3 real estate rules of thumb to analyze deals faster and avoid costly mistakes.
- These simple strategies will help you focus on properties that align with your investment goals.
The 1% Rule
- Use the 1% rule: the monthly rent should be at least 1% of the all-in property price (purchase price + rehab costs).
- Higher percentages are generally better but consider location and potential expenses.
The 50% Rule
- Apply the 50% rule: expect 50% of your rental income to go towards expenses (excluding mortgage).
- Factor in vacancy, maintenance, capital expenditures (CapEx), and property management fees.