The 1% rule is a fast first screen: monthly rent should be at least 1% of the all-in purchase price, so a $200k duplex needs to pull about $2,000/month to clear it. You won't hit that in most coastal metros anymore, but the cash-flow Midwest and Southeast still deliver. Kansas City, Columbus, Cleveland, Indianapolis, Dayton and Detroit routinely pencil out — Detroit is posting one of the highest cap rates in the country right now. Memphis and Birmingham work in the South, and Buffalo is a quiet Northeast value play with a ~$225k median and yields north of 8%. Treat the 1% as a filter, not a promise: verify real rents and real expenses before you fall in love with a spreadsheet.
No referrals yet — be the first! Every friend who buzzes through your link puts you on the board.
Log in and buzz to get your share link and climb the board.
Log in or create a free account to join the conversation.
The part that resonates is that the boring version wins. Every shiny shortcut I tried quietly cost me more time than it saved. Have you found any shortcut that actually was worth it?
Honestly didn't expect to agree this much, but you've talked me into it. Going to try the smaller version this week and see.
Good stuff. The one thing I'd flag for newcomers is that the first month feels like nothing's happening, and that's exactly when people bail. How did you stay convinced before you had results to point to?
The 1% rule got me in the door but it fell apart the second I underwrote real capex and management. My deals that actually cash-flowed were boring B-class duplexes in the Midwest, not the shiny stuff. Are you reserving for repairs or just running taxes and insurance?
Really clear, and the fact that it's one page instead of a 12-step system is the selling point. The complicated versions always die in my notes app. Do you ever feel the urge to add more to it?
Worth saying this works way better once the fundamentals are in place. I jumped straight here as a beginner and it didn't click until I'd put in the boring reps first. Would you tell a total beginner to start here, or build up to it?