The 1% Rule When Investing In Real Estate: Is It Dead Or Alive?

Would you believe me if I told you there was a place on this planet Earth, right here in the United States, where the 1% Rule was still in play when considering residential real estate investing?

There is. And those of you that know me well know where it might be. I’m working on plans to help my real estate investor clients to know when and where to put their hard earned investment capital.

For those of you unfamiliar with the 1% Rule it goes something like this. Buy your income property or rental houses or investment homes (whatever you call them) where the rent is 1% of the sales price. In other words, if the home costs $100,000 then the rents would be $1,000 per month.

A fantasy you say? If I lived in California or Washington, DC or New York or Florida and owned income property there I would be skeptical, as well. But there are such places here in the Heartland.

Kansas City is a great place to invest in income housing. No question about it. But there are a couple of other jewels out there where growth is STILL happening and rents are strong. More on this as things come closer to finalization.


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2 responses to “The 1% Rule When Investing In Real Estate: Is It Dead Or Alive?

  1. Jeff Brown

    Where do you keep you time machine Chris?

  2. Chris Lengquist


    The time machine is in getting new tires and the engine oil changed. (Don’t want to get caught in the Wild West before oil was discovered.)

    I’m still working out some details but it is a very real and magical place. No fairy dust is even required.

    Of course, the key to all of this value is that our baseball team constantly has an “outside” chance at winning the World Series.

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