{"id":213,"date":"2023-03-03T00:25:10","date_gmt":"2023-03-02T19:25:10","guid":{"rendered":"http:\/\/doozyspot.com\/?p=213"},"modified":"2023-03-03T01:53:42","modified_gmt":"2023-03-02T20:53:42","slug":"easy-formulas-to-help-new-investors-know-if-a-rental-property-will-cash-flow","status":"publish","type":"post","link":"https:\/\/doozyspot.com\/?p=213","title":{"rendered":"Easy formulas to help new investors know if a rental property will cash flow."},"content":{"rendered":"\n<p><strong>The 1% rule<\/strong><\/p>\n\n\n\n<p>This rule states that when buying a property, the goal &#8220;should&#8221; be to have monthly rent be at least 1% of purchase price. Ex: If price is $220,000 you would want rent to be at least $2,200\/mo.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>The 50% rule<\/strong><\/p>\n\n\n\n<p>This rule states that on average, ~50% of total gross income &#8220;could&#8221; go towards expenses, not including mortgage payment. Ex: With $2,200\/mo rent, ~$1,100 &#8220;could&#8221; go to expenses such as taxes, insurance, vacancy, large repairs, utilities, mgmt\/maintenance etc.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>The 70% rule<\/strong><\/p>\n\n\n\n<p>This rule states that if a property needs a lot of rehabs, an investor would aim to have total cost be ~70% of the after-repair value. Ex: If rehabbed property is worth $250k? An investor would aim to have total cost, including rehab be at or below ~$175k.<\/p>\n\n\n\n<p><br><br>NOTE these guidelines WILL have variance &amp; these are VERY general ways to help new investors begin analyzing. Each property\/investor is unique and will have their own set of criteria &amp; goals*<\/p>\n\n\n\n<p><em>source twitter ficouple<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 1% rule This rule states that when buying a property, the goal &#8220;should&#8221; be to have monthly rent be at least 1% of purchase price. Ex: If price is $220,000 you would want rent to be at least $2,200\/mo. The 50% rule This rule states that on average, ~50% of total gross income &#8220;could&#8221; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24],"tags":[26,25],"class_list":["post-213","post","type-post","status-publish","format-standard","hentry","category-real-estate","tag-realestate","tag-rental-property"],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Easy formulas to help new investors know if a rental property will cash flow. - DoozySpot<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/doozyspot.com\/?p=213\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Easy formulas to help new investors know if a rental property will cash flow. - DoozySpot\" \/>\n<meta property=\"og:description\" content=\"The 1% rule This rule states that when buying a property, the goal &#8220;should&#8221; be to have monthly rent be at least 1% of purchase price. 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