If you want to know what is the one percent rule in real estate investment, follow these pointers for a detailed idea;
Real estate investors can quickly determine whether a rental property can produce a healthy cash flow by using the One Percent Rule.
This guideline states that the monthly rent must be at least 1% of the property's entire purchase price, which includes any upfront maintenance or remodeling costs.
For example, if you buy a property for Rs. 50,00,000 and spend Rs. 2,00,000 on repairs, the total investment becomes Rs. 52,00,000. To meet the One Percent Rule, the property should earn at least Rs. 52,000 per month in rent.
This rule helps investors filter out properties that may not generate enough income to pay expenses and provide profit. However, it is simply a tentative guideline.
Taxes, home loan interest, insurance, maintenance, vacancies, and market fluctuations are examples of continuing expenses that are not taken into account in this One Percent Rule.
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What is the One Percent Rule in Real Estate?
Karishma78
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2025-12-04T10:55:55+00:00 2025-12-04T10:55:57+00:00Comment
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